TaxTMI 
TaxTMI 
2022 (6) TMI 939
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....sessee are reproduced as here under: 1. "That having regard to the facts and circumstances of the case, the Id. CIT has erred law and facts in assuming jurisdiction under section 263 further erred in holding the assessment order 26/10/2017 is erroneous so for as it is prejudicial to the interest of the revenue. 2. That in any case and in view of the matter, action of the Id. CIT in assuming jurisdiction under section 263 and passing the impugned order under this section is bad in law and against the facts and circumstances of the case. 3. The Ld. Assessing officer passed order under section 144 of the income tax Act, 1961 after meticulously analysing the facts of the case in the matter of deposits made in the bank....
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.... adjudication. 4. Before us, Mr. C. Suresh Kumar, CA represented the assessee and Mr. AR V Sreenivasan, Addl. CIT, represented the Department. 5. Brief facts of the case are that assessee filed his return of income on 11.02.2016 reporting a total income of Rs. 1,86,020/-. The case was selected under limited scrutiny for a reason that "cash deposit in savings bank accounts is more than the turnover". Statutory notices were issued and served on the assessee. Ld. AO noted in the course of assessment proceedings that Shri. B. Sundarajan, FCA has filed letter dated 15.09.2016 along with certain documents and power of attorney which in fact were not enclosed with the said letter. In the course of assessment proceedings, the assessee was ask....
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....e trading during the year and these are business transactions as per section 43(5) of the Act and same ought to have been brought to tax as per section 44AD of the Act. On these issues, show cause notice was issued on 20.01.2020 for initiating the revisionary proceedings u/s. 263 of the Act. In the revisionary proceedings also, no one appeared nor filed any details on behalf of the assessee. Ld. PCIT thus completed the revisionary proceedings and passed the order u/s. 263 of the Act by holding that the order passed u/s. 144 dated 26.10.2017 is erroneous in so far as it its prejudicial to the interests of revenue. Ld. PCIT set aside the assessment order with a direction to the AO to call for the details regarding the sources of cash deposits....
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....ase under limited scrutiny that "cash deposit in savings bank accounts is more than the turnover" no enquiry, much less proper enquiry has been undertaken by the Ld. AO, as contended by the Ld. Sr. DR. He also referred to the explanation 2 to section 263 of the Act provides for certain circumstances where the order passed by the AO shall be deemed to be erroneous in so far as it is prejudicial to the interests of revenue which is reproduced as under: "Revision of orders prejudicial to revenue. 263. (1)..... Explanation 1: ............. Explanation 2.-For the purposes of this section, it is hereby declared that an order passed by the Assessing Officer shall be deemed to be erroneous in so far as it is prej....
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....we do not have any jurisdiction to adjudicate or express any views on the same in the present appeal before us. Accordingly, we refrain ourselves from expressing any views on the observations and findings given in the said order. However, Ld. Sr. DR. pointed out that in these proceedings also the assessee has avoided compliance in respect of providing explanation on the sources of cash deposit in the two savings bank accounts totaling to Rs. 57,23,537/- as against the declared sales of Rs. 5,10,000/- only. 10. We have heard the rival contentions and perused the material on record. The observations that the assessee/his authorized representative have been avoiding the compliance required by the authorities below is evidently coming out fr....