2022 (9) TMI 816

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....F. No. Pr. CIT-1/VSP/263/2018--19 dated 25.03.2019 for the Assessment Year (A.Y.) 2014-15. 2. Brief facts of the case are that the assessee is an individual engaged in legal profession, filed his return of income for the A.Y. 2014-15 on 02.11.2015 admitting total income of Rs. 2,18,600/-. The case was selected for scrutiny under CASS for verification of large value of deposits in cooperative bank and low other source income in the return of income, compared to very high aggregate deposits as per UCB Data. Subsequently, the assessment was completed u/s. 143(3) of the Income Tax Act, 1961 (in short 'Act') on 28.11.2016 by assessing the total income at Rs. 3,12,070/-. During the course of assessment proceedings, the Assessing Office....

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....u/s. 115BBE of the Act. The Ld. Pr. CIT further observed that even if the AO resorted to estimation of the profit on the said receipts, the same should have been estimated @ 69.89%, being the percentage of profit offered by the assessee as per the P&L account and in the return of income. Therefore, held that the assessment order dated 28.11.2016 passed u/s. 143(3) is erroneous and prejudicial to the interest of the revenue and proposed for revision u/s. 263. Accordingly, issued show cause notice dated 02.04.2018 to the assessee as to why the assessment order u/s. 143(3) of the Act dated 28.11.2016 should not be revised. In response to the notice, the assessee filed a letter dated 01.05.2018 along with statement of loan account maintained wi....

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.... by retracting from his earlier version and stated that the source for the deposit to the extent of Rs. 9,51,000/- was the mortgage loan raised by his mother and stated that the same was not his professional receipts, which was not submitted before the AO. The Ld. Pr. CIT observed that different versions of the assessee at different times regarding sources of cash deposits in Andhra Bank account clearly indicate that undisclosed professional receipts were deposited by the assessee in his bank account as admitted during the assessment proceedings and amount to the extent of Rs. 9,51,000/- was transferred to another account stated to be belonging to his uncle. Therefore, the Ld. Pr. CIT observed that the entire amount of deposits ought to hav....

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....cumstances invoking powers u/s. 263 of the I.T. Act to revisit the same issue and directing the AO to treat the deposits as falling within the scope of sec. 115BBE of the I.T. Act is not permitted under the law. 5. Under the facts and circumstances of the case the learned Pr. CIT is not correct in directing the AO to consider the deposits in bank as liable for tax u/s. 115BBE of the I.T. Act. 6. For these and other reasons that are to be urged at the time of hearing of the appeal the appellant prays that the order passed by the learned Pr. CIT is erroneous both on facts as well as in law, therefore, the same needs to be set aside in the interest of justice. 5. All the grounds of appeal are related to the order passed by....