2023 (1) TMI 165

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.... filed return of income of Rs. 1,44,320/- by computing income u/s 44AD of the Act. The case of the assessee was taken up for scrutiny and the ld AO made an addition of Rs. 2 lakh in term of observation at para 2 of the assessment order as below:- "2. During the course of assessment proceedings assessee has submitted written reply of questionnaire and mentioned that he submitted the ITR u/s 44AD on presumptive basis an J by mistake while preparing the return the income has been mentioned Rs. 1,74.2 DO/- instead of Rs. 3,74.290/- @ 8% on the gross receipts of Rs. 46.78.625/-. Assessee further submitted that revised ITR for the year under consideration may be accepted and assessee is agree to pay the tax assessed. Considering the subm....

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....cordingly. Thus, prima-facie the entire cash deposited in the Bank account appeared to be unexplained. Accordingly, the assessment order dated 31.01.2014 passed by the A.O. was considered to be erroneous as well as pre-judicial to the interest of Revenue and the same needed Revision U/S 263 of the Act. Accordingly, a show-cause notice u/s 263 of the I.T. Act was issued to the assessee on 27th October, 2015 in which the assessee was asked to explain the source of entire cash deposit to the tune of Rs.45.22 lacs. The assessee from time to time attended the proceedings and also submitted written submissions. During the proceedings u/s 263, the assessee was also asked whether interest income from his Saving Bank account was declared by him in h....

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.... Commissioner of Income Tax has erred in reopening the case of assessee U/s 263(1) of the Income Tax Act, 1961." 5. Heard and perused the record. 6. The ld AR contended that the ld AO had conducted a detailed enquiry/ scrutiny in regard to issues examined by the ld Pr. CIT while exercising powers u/s 263 of the Act. Referring to page No. 3 of the notice issued u/s 143(3) he referred to Question No. 20 which mentions a query "you have deposited Rs. 10 lakh or more in saving bank account. Please explain the source of the same." Referring to the reply to this query the ld AR submitted that return was filed u/s 44AD on presumptive basis, the query was relevant. The ld AR referred to copy of the assessment order filed at page 34 and 35 of ....