AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2023 (4) TMI 630
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....e, the entire proceedings u/s 263 being unnecessary may kindly be quashed. And the assessment order u/s 143(3) dated 24.12.2019 may kindly be sustained and restored. 2. The setting aside of assessment order is unjustified, against facts and circumstances of the case and unlawful. Therefore, the order by Ld. Principal Commissioner of Income Tax for denovo reassessment may kindly be quashed. And the order of A.O. may kindly be sustained. And the assessment order u/s 143(3) dated 24.12.2019 may kindly be sustained and restored. 3. That the assessee filed all the required details as per the notice u/s 263 before Ld. Principal Commissioner of Income Tax but Ld. Principal Commissioner of Income Tax did not appreciate the details filed by the assessee and passed order u/s 263 arbitrarily and mechanically which is bad in law. Therefore, the order u/s 263 is unlawful, unjustified, against facts and circumstances of the case, may kindly be quashed. And the assessment order u/s 143(3) dated 24.12.2019 may kindly be sustained and restored." 2. Briefly the facts of the case are that the assessee filed her return of income declaring total income of Rs. 8,98,310/- which was selected for l....
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....Ld. AR submitted that the assessee's case was selected for limited scrutiny for issue of "cash deposit during the year. The Ld. A.O. issued a questionnaire u/s 142(1) in which he is confined to the issue of limited scrutiny i.e. the question of cash deposit and raised relevant queries. The assessee filed the detailed reply in response of the above notice, explaining all the queries made by the A.O. While concluding the assessment, the Ld. A.O. mentioned the following - "Subject to the findings in the reply of the assessee, narration of the facts, references of the evidences, analysis and observation, returned income of the assessee is being accepted and accordingly assessment order is being passed u/s 143(3)." 4.1. It was submitted that there were two points on which the Ld. Principal Commissioner of Income Tax has ordered the assessment order to be passed denovo. These two points are being reproduced as under- "I. As per P&L A/c for the relevant financial year, sales were declared at Rs.4,16,61,845/-. However, as per the submission of the assessee, cash sales were disclosed at Rs.4,43,20,245/-. In view of above, the assessee has disclosed total sale in her P& L A/c which....
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.... the Ld. A.O. from the person, M/s Agarwal Auto Sales, who gave the commission. A certificate from M/s Agarwal Auto Sales regarding this was filed before A.O. is being attached at page 50 of the paper book. This commission amounting of Rs. 3,29,302/- received by the assessee from M/s Agarwal Auto Sales is also verifiable from Form 26AS of the assessee (Form 26AS is attached at page 33 to 39 of the paper book). 4.5 It was submitted that though on receipt of the notice by Principal Commissioner of Income Tax u/s 263, the assessee filed the quantum details in shape of fresh certificate from Agarwal Auto Sales before Ld. PCIT, being attached at page no. 16 of the paper book and details showing name of the customers, address of the customers, and model of the vehicle - the quantum details filed before Ld. PCIT is also being attached at page no. 17 to 20 of the paper book) 4.6 It was submitted that by no stretch of imagination when the commission income is quantified, certain and verified then what is the role of the customer name, address and vehicle model. The assessee sold motorcycles, which is a product which has to be registered with transport department. So unnecessarily asking f....
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....s are made with regard to the assessment order passed by the AO being considered erroneous as pointed out in the show cause notice. (i) With regard to discrepancy in sales declared in P&L Account at Rs. 4,16,61,845/- and cash sales disclosed at Rs. 4,43,20,245/- in the submissions filed by the assessee, during assessment proceedings, it has been submitted by the assessee that AO made enquiry regarding this and assessee had furnished her reply. I have gone through the assessment records and it has been submitted by the assessee as follows: " the total sales of the assessee during the AY under consideration was Rs. 4,03,70,601/-, value added Tax of sales was Rs. 58,53,738/- and Sale of service during the year was Rs. 12,91,244/- and thus total realization of sales was Rs. 4,75,15,583/-" Further, total cash sales in FY 2016-17 has been shown at Rs. 4,43,20,245/- in the same submission. It is apparent that the assessee has not reconciled how she has arrived at sales figure shown in P&L Account nor the AO has made any enquiry on this issue. (ii) Further, during the assessment proceedings, it has been submitted by the assessee that he had made sales on commission basis for....
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....epancy, the order so passed by the AO cannot be held as erroneous in so far as prejudicial to the interest of the Revenue and thus, the findings of the ld PCIT in this regard are set-aside. 7. Now, coming to the matter relating to sales on commission basis effected by the assessee for M/s Agarwal Autosales, Sitapur where sales proceeds of Rs. 2,41,67,061/- were deposited in the bank account of the assessee, it has been held by the ld PCIT that a certificate from M/s Agarwal Autosales, Sitapur is placed on file wherein no details of quantum of sale are mentioned and besides that, no other documents were filed during the assessment proceedings, substantiating the quantum of sales made by the assesseee for M/s Agarwal Autosales, Sitapur and the Assessing Officer during the course of assessment has neither enquired into the facts of the case nor examine the same. 8. In this regard, firstly, we find that as per assessee's own submissions before the AO, the assessee was a sub-dealer of M/s Agarwal Autosales, Sitapur till June 2016 and used to collect the sales proceeds of bikes and deposit the same in her bank account maintained with Vijay Bank and subsequently, the same was transferre....