TaxTMI 
TaxTMI 
TaxTMI 
2023 (11) TMI 340
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....he Act consequently passing revisionary order u/s 263 of the Act which is invalid and void ab-initio. 3. Facts in brief are that the assessment in this case was framed u/s 143(3) of the Act vide order dated 24.12.2019 as determining the total income of Rs. 4, 46,70,490/- . The Pr. CIT upon perusal of the assessment records observed that there was abnormal increase in cash deposits into the bank account of the assessee during the year especially during the demonetization period. The Ld. Pr. CIT observed that there was no cash sales from April to July, 2016 however in August the cash sales were only 5.00 lacs which rose to Rs. 11.00 lacs in September and fell back to Rs. 1.60 lakhs in October. However in November, sales were more than Rs. 7.....
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....he accordingly revised and set aside the assessment on the ground that the AO has not done proper enquiry and verification. The Ld. A.R vehemently submitted before us that case of the assessee was selected for scrutiny through CASS and notice u/s 143(2) was issued on 16.08.2018 which was duly served on the assessee during the assessment proceedings. A detailed questionnaire was issued 27.09.2019 along with notice issued u/s 142(1) of the Act which was finally replied by the assessee on 21.10.2019 by furnishing the details of cash deposited during demonetization period, details of bank statement, details of sundry creditors etc. The Ld. A.R also submitted the copy of acknowledgment of return, audit report, details of expenses along with ledg....
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....at depth and details accepted the explanation of the assessee and made no addition while framing the assessee. The Ld. A.R therefore submitted that the AO has taken a plausible and possible view on the basis of evidences/explanation furnished by the assessee r after doing necessary verification and examination of the same. The Ld. A.R submitted that where the Pr. CIT was of the view that the AO has not conducted proper enquiry then the Pr. CIT is under obligation to conduct an enquiry and come to a definitive conclusion as to how the assessment framed is erroneous and prejudicial to the interest of the revenue. But the ld Pr. CIT has revised the assessment with himself conducting enquiry and stating as to how the assessment is erroneous and....
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....so took note of the prohibition in the States of Bihar on sale of these items which was lifted from July, 2016 onwards and sales were spurred besides the sales push due to festive season. We note that the AO has recorded a finding in the assessment order that during the demonetization period assessee has deposited huge cash as compared to pre-demonetization period and this was the reason that the case of the assessee was selected for scrutiny under CASS. We also note that comparative details of cash sales and cash deposited for during two years i.e. FY 2015-16 and 2016-17 were furnished after AO asked for the same. Smt. Gudia Singhania, the assessee, is a proprietor of two proprietary concern namely M/s Aariket Traders & M/s Ariket Enterpri....
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....ry enquiry which he has failed to do so. In our opinion, the said observations of the Pr. CIT is factually wrong and contrary to the facts on records. The AO has examined the issue in detail and after analyzing the details filed by the assessee with the documents, bank book and cash book, a conclusion has been recorded in the assessment order para nos. 2,4 and 5 and only thereafter accepted the plea of the assessee and framed the assessment accordingly. Considering these fact, we are of the view the conditions as envisaged u/s 263 of the Act have not been fulfilled i.e. for invoking jurisdiction u/s 263, the assessment order has to be erroneous insofar as prejudicial to the interest of the revenue. In our opinion, the twin conditions have t....