TaxTMI 
TaxTMI 
2019 (3) TMI 1963
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....In the first round, the assessee had approached the Tribunal in ITA No.215/PN/2011 assailing the order of CIT(A) confirming addition of Rs. 41,15,000/- under section 69 in respect of land purchased from Pingle family. The Tribunal vide order dated 11-06-2012 had restored the issue back to the file of AO with specific directions to verify the fate of additions in respect of alleged 'on-money' payment by the assessee in the hands of vendors of the land. Consequent to the directions of the Tribunal, the assessment order dated 28-03-2014 was passed by the AO u/s.143(3) r.w.s.254 of the Act. The AO after making detailed enquiry and verifying the land transaction threadbare made no addition in the hands of assessee. Thereafter, the Pr. CIT invoke....
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....AO failed to conduct proper enquiry in respect of land transaction despite categoric directions from the Tribunal, therefore, the Pr. CIT was constrained to invoke the provisions of section 263. 4. Heard both sides. Orders of the authorities below perused. We have also considered the documents furnished by the assessee in the form of paper book. A perusal of documents on record revealed that the issue relating to purchase of land by the assessee from Pingle family had travelled to the Tribunal earlier in an appeal filed by the assessee in ITA No.215/PN/2011 (supra). The Tribunal vide order dated 11-06-2012 restored the issue back to the file of AO with the following directions : "9. We have considered the rival arguments made by both t....
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....portunity was given to the assessee to cross examine Deepak V. Pingle. It was thereafter that the AO passed a assessment order u/s.143(3) r.w.s. 254 accepting returned income, which is now subject matter of revision u/s.263. 5. The ld. Authorized Representative has asserted that the revision proceedings u/s.263 have been initiated consequent to the objection raised by the Internal Audit Department. A perusal of the reply by the AO to the internal audit objection at pages 53 to 58 of the paper book reveals that initially the AO has defended the assessment order and has refuted the objections of ITO (Internal Audit). However, in the latter part of the reply, as a matter of precaution and to protect the interest of Revenue, approval was soug....
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....cluding the question as regards cash transactions which fell within the purview of s. 40A(3). Similarly, the Tribunal also proceeded on the basis that the record before it did not contain any discussion on the issue. This aspect of the finding of the Tribunal suffers from the same error as the order passed by the AO. Though the assessment order did not contain a specific reference to the applicability of s. 40A(3), the response of the AO to the audit query shows that it was his view that those provisions were not applicable to the facts of the present case. The AO supported his view with reference to decisions of the Tribunal. This view of the AO was also affirmed by the CIT. In the circumstances, the exercise of the power under s. 263 cann....