2023 (7) TMI 468
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....y Income-tax Officer, Ward-3, Panipat (hereinafter referred to as 'ld. AO'). 2. The only issue to be decided in this appeal is as to whether the ld. PCIT was justified in invoking revision jurisdiction u/s 263 of the Act in the facts and circumstances of the case. 3. We have heard the rival submissions and perused the materials available on record. We find that assessee is an individual and engaged in the business of developing properties. The return of income was filed for the A.Y. 2017-18 on 05.08.2017 declaring total income of Rs 19,69,150/- plus agricultural income of RS 90,510/-. The case of the assessee was selected for limited scrutiny for verification of issue of 'Cash deposit during the year'. In the course of assessment proceedi....
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....n alone of the assessee and proceeded to make an addition towards cash balance in the sum of Rs 75,000/- in the assessment completed u/s 143(3) of the Act on 30.11.2019. This assessment was sought to be revised by the ld. PCIT by invoking his revision jurisdiction u/s 263 of the Act on the ground that the ld. AO had not made detailed enquiries with regard to the source of cash deposits made by the assessee during the year. Accordingly, he treated the order passed by the ld. AO as erroneous and prejudicial to the interest of the revenue. Aggrieved by this revision order u/s 263 of the Act passed by the ld. PCIT, the assessee is in appeal before us. 5. At the outset, we find that out of the three sources of availability of cash balances with....
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.... gift to the assessee by way of banking channels and there was no need to withdraw money from their bank account and give cash gift to the assessee. The ld. PCIT also stated that the 3 brothers of the assessee could not have given the gift of Rs 3 lakhs each considering their economic status. Accordingly, the ld. PCIT concluded that the receipt of cash gifts of Rs 16 lakhs ought to have been treated as unexplained cash credit of the assessee to be taxed u/s 68 of the Act. The ld. PCIT concluded that adequate enquiries with regard to the cash gifts received were not conducted by the ld. AO, which makes his order erroneous and prejudicial to the interest of the revenue. The ld. PCIT also invoked the provisions of Explanation 2 to section 263 ....
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....e the same :- a) Notice u/s 143(2) of the Act dated 11.08.2018 selecting the return for limited scrutiny specifically to examine the 'cash deposit during the year', enclosed in pages 20 to 23 of the paper book. b) Notice u/s 142(1) of the Act dated 01.03.2019 issued by the ld. AO wherein vide question no. 5 thereon, the assessee was specifically asked to furnish the source of cash deposits made during the year under consideration. This is enclosed in pages 24 to 25 of the paper book. c) Another notice u/s 142(1) of the Act dated 18.07.2019 issued by the ld. AO sending reminder to the assessee to furnish the details already called for. This is enclosed in pages 26 to 27 of the paper book. d) Yet another notice u/s 142(1) of the Ac....
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....aining the complete sources of cash deposits made in the sum of Rs 24,28,000/-. In this reply, the assessee specifically stated with regard to receipt of cash gifts as under:- Name of the Donor Relationship Amount Jai Bhagwan, S/o Gian Chand Brother 3,00,000 Vinod Kumar, S/o Gian Chand Brother 3,00,000 Rajesh Kumar, S/o Gian Chand Brother 3,00,000 Lalit Kumar, S/o Sohan Lal Son 3,00,000 Deepak Kumar, S/o Sohan Lal Son 4,00,000 The assessee furnished the affidavits of Shri Jai Bhagwan, Shri Vinod Kumar and Shri Rajesh Kumar together with their income tax returns, copy of computation of income , copy of PAN card, copy of aadhar card and copy of bank statement which proves that the income of the donors were not deposi....
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....assessee by explaining their sources. The evidences in this regard are enclosed in pages 134 to 226 of the paper book. We find that from the perusal of the order of ld. PCIT u/s 263 of the Act , the ld. PCIT does not even whisper about these verification being carried out by the ld. AO at the behest of ld. PCIT during revision proceedings. In these facts and circumstances, in our considered opinion, we hold that the ld.AO in the original assessment proceedings itself had made adequate enquiries with regard to the cash gifts received by the assessee in the sum of Rs 16 lakhs ; that the ld. AO had again examined the veracity of the gifts at the behest of ld. PCIT during revision proceedings u/s 263 of the Act, by issuing notices u/s 133(6) of....