TaxTMI 
TaxTMI 
2023 (11) TMI 792
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....sed by the Deputy Commissioner of Income Tax, CIR, Karnal (hereinafter referred to as "the AO") under section 143(3) dated 06.12.2019 is erroneous in so far as prejudicial to the interest of the revenue, is illegal, bad in law and without jurisdiction. 2.1 The assumption of jurisdiction by the Hon'ble PCIT in the instant case being without satisfaction of pre-requisite twin conditions under section 263 of the Act Le. Assessment order being erroneous as well as prejudicial to the interest of revenue, and therefore the same is bad in law and consequently, the impugned order passed in pursuance thereto is liable to be quashed. 3. That the Hon'ble PCIT has grossly erred in law and on facts in passing revisional order under section 263 of the Act, directing the Id. AO to make fresh assessment with respect to the issue that the ld. AO had failed to invoke the provisions of section 68/69/69A/69B/69C/69D on the income of Rs. 90,63,000/- surrendered by the assessee on account of discrepancy in stock and cash found during the course of survey proceedings and he also failed to enquire as to why the assessee had paid taxes at normal tax rate instead of maximum margina....
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....herein an additional income of Rs. 90,63,000/- was admitted by the assessee on account of unexplained cash and stock. The assessee filed his return for AY 2017-18 on 25.09.2017 declaring income of Rs. 94,60,870/-. His case was selected for compulsory scrutiny. During assessment proceedings the Ld. Assessing Officer ("AO") issued statutory notices along with questionnaire in response to which the assessee filed written reply along with documents and evidence mentioned therein. The Ld. AO perused and considered them. He called for the books of account of the assessee which were produced. He verified the books of account. Thereafter, he completed the assessment on 06.12.2019 under section 143(3) of the Act on the income returned at Rs. 94,60,870/-. 4. The Ld. PCIT, in exercise of jurisdiction conferred on him under section 263 of the Act issued the following show cause notice. "Sub: Show Cause Notice u/s 263(1) of the Income Tax Act 1961 for the A.Y. 2017-18 reg. Return declaring income of Rs. 94,60,870/- for the A.Y. 2017-18 was filed by you on 25.09.2017. Subsequently, the assessment for the year under consideration was completed u/s 143(3) of the Income Tax Act....
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....he Ld. PCIT being devoid of merits. According to him, the surrendered income was in the nature of unexplained cash and unexplained stock and the same was liable to be added as income from other sources and tax was liable to be paid @ 60% under section 115BBE of the Act which the Ld. AO failed to do. Therefore, his order was erroneous and prejudicial to the interest of Revenue which he set aside with direction to the Ld. AO to pass fresh order in accordance with law. 7. Aggrieved, the assessee is in appeal before the Tribunal and all the grounds relate thereto. 8. At the very outset, the Ld. AR pointed out that it is a covered matter in favour of the assessee by the decision of the ITAT Delhi rendered on 30.11.2022 in ITA No. 826/Del/2022 for AY 2017-18 in the case of Shri Bharat Malhotra Prop. Shri Nathji Jewels, Karnal, Haryana who is son of the assessee. A copy thereof was placed on record. The Ld. AR submitted that the facts of the assessee's case are exactly the same as those of his son. He submitted a chart showing therein the facts of the case of the assessee and facts in the case of his son. The Ld. AR therefore urged that the decision (supra) of the Tribunal in the ca....
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.... assessment order has become prejudicial to the interest of the Revenue. 16. The moot point is as to whether the amendment is prospective or retrospective as on the date of survey he amended provisions were not there in the statute. 17. In our considered opinion, this is clearly a debatable issue which cannot be subject matter of assumption of jurisdiction u/s 263 of the Act. 18. A perusal of section 115BBE of the Act shows that where the total income of the assessee includes any income referred to in sections 68, 69, 69A, 69B, 69C or 69D, the income tax payable shall be @ 30% on income so referred to in the said sections. Further, in terms of amended provisions of section 115BBE of the Act by Taxation Laws, Second Amendment Act 2016, it provides that where the total income of the assessee includes any income referred to in sections 68, 69, 69A, 69B, 69C, and 69D and reflected in the return of income furnished under section 139 or total income of the assessee determined by the assessing officer, any income referred to in sections 68, 69, 69A, 69B, 69C, or 69D if such income is not reflected in the return of income furnished under section 139 of the Act, i....