TaxTMI 
TaxTMI 
2022 (11) TMI 524
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.... the case. 2. The Hon'ble Principal Commissioner of Income Tax, Hubballi, erred in holding that the assessing officer has not conducted enquiry/ investigation including source of cash deposits before concluding the assessment. 3. The exercise of jurisdiction u/s 263 by the Hon'ble Principal Commissioner of Income Tax, Hubballi, is bad in law. 4. The Hon'ble Principal Commissioner of Income Tax, Hubbalhi, ought to have appreciated that during the assessment proceedings the assessee had produced all material evidence in support of its contentions and the same was examined, hence, there is no error committed by the assessing officer in passing the assessment order prejudicial to the interest of revenue. ....
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.... issue presuming that the assessee is not wish to make any submissions in this regard and the matter will be decided based on the material available on record. Even the assessee did not choose to furnish any reply. Accordingly, the matter was decided on the basis of material available on record. The ld.Pr.CIT relied on the judgment of Cochin International Airport Ltd., reported in 92 taxmann.com 277. The Hon'ble ITAT Cochin Bench has explained the provisions of sec. 263 of the Act. Further, the ld.Pr.CIT also relied on the following judgments. 1. Malabar Industrial Co., Ltd [2000] 243 ITR 83 (SC) 2. Daniel Merchants P. Ltd. 2017- TIOL-455-SC-IT 3. Rajmandir Estates P Ltd. (2017) 245 Taxman 127 (SC) 4. Ash....
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....s/sales bills, stock position, source and application of cash and opening cash balance as on 1st day of financial year, analysis of the cash balance during the demonetization period. The ld.Pr.CIT has rightly observed from the records and he has rightly exercised his jurisdictional power as per Explanation -2 to sec.263 of the Act. 8. After hearing both sides and perusing the entire material on record and examining the order of the lower authorities, we observe that the AO has not examined the details with respect to cash deposits made during the demonetization period. The AO should have been examined in depth the source of the cash deposited during the demonetization period. The ld.DR has rightly pointed out that ld.Pr.CIT has rightly e....
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.... form of a circular dated 15/11/2017 in F.No. 225/363/2017-ITA.II and the last one dated 09/08/2019 in F.no.225/145/2019-ITA.II. These instructions gives a hint regarding what kind of investigation, enquiry, evidences that the assessing officer is required to take into consideration for the purpose of assessing such cases. 8. In 1 of such instructions dated 09/08/2019 speaks about the comparative analysis of cash deposits, cash sales, month wise cash sales and cash deposits. It also provides that whether in such cases the books of accounts have been rejected or not where substantial evidences of vide variation be found between these statistical analyses. Therefore, it is very important to note that whether the case of the assessee ....