2023 (9) TMI 30

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....tion exercised u/s 263 of the Act by Ld. Pr. CIT thereby passing a revisionary order which is invalid and bad in the eyes of law. 3. The facts in brief are that the assessee filed its return of income on 27.03.2018 declaring total income at Rs. 10,75,850/-. The case of the assessee was selected for limited scrutiny through CASS because of cash deposited during the demonetization period. Accordingly, the Assessing Officer (in short ld. 'AO') after calling for the information as to the cash deposited during the demonetization period of Rs. 20,86,496/- partly accepted the plea of the assessee and framed the assessment u/s 143(3) of the Act on 04.07.2019 assessing total income at Rs. 14,25,850/- by making addition of Rs. 3,50,000/- out....

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....hich stood examined in detail by the AO in the assessment proceedings. Ld. A/R contended that the case of the assessee was selected for limited scrutiny under CASS only for examination of cash deposited during the demonetization period. Ld. AO after calling upon the relevant documents from the assessee and after examination of the same ,partly accepted the plea of the assessee by accepting the source of the cash to the tune of Rs. 17,36,496/- whereas the remaining Rs. 3,50,000/- remained unexplained and therefore, added to the income of the assessee. Ld. A/R argued that the jurisdiction u/s 263 of the Act is not available to Ld. Pr. CIT where the AO has called for the explanation from the assessee and the assessee has furnished all supporti....

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....order as erroneous and prejudicial to the interests of the revenue. Moreover, with the exercise of revisionary jurisdiction the assessee is not put to any loss or prejudice as the assessee would get the due opportunity even in the set aside proceedings. Ld. D/R therefore, prayed that the case of the assessee may kindly be dismissed. 6. We have heard rival contentions and perused the material available on record. Undisputedly, the case of the assessee was selected for limited scrutiny for the reason that the assessee has deposited cash of Rs. 20,86,496/- deposited during the demonetization period in his bank account. During the assessment proceedings Ld. AO called for the evidences from the assessee as regards the cash deposited which were ....

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.... framed as erroneous unless it is not in accordance with law or against the facts on records. Hon'ble Court has also held that if the AO acting in accordance with law makes assessment, the same cannot be branded as erroneous by the Commissioner simply because, according to him, the order should have been written more elaborately and this section does not visualize a case of substitution of the judgment of the Commissioner for that of the AO who has passed the order, unless the decision is held to be erroneous. The Hon'ble Court has further held that the Commissioner, on perusal of the records, may be of the opinion that the estimate made by the officer concerned was on the lower side and if left to the Commissioner, he would have es....