2024 (9) TMI 480

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....s taken by the assessee are as under: - 1. The order of the Ld. PCIT (Central) is contrary to law, facts and opposed to the principles of natural justice and fair procedure. 2. The Id. PCIT has failed to appreciate the fact that as per Explanation 2 (a) to Section 263, "...an order passed by the AO shall be deemed to be erroneous, if the order is passed without making inquiries or verification which should have been made". In the instant case, a thorough scrutiny has been carried out by the Ld. AO, being a search assessment, after giving enough opportunities to the appellant to appear and explain the case during the assessment proceedings. Hence, invoking Section 263 is not justified. 3. The Ld. PCIT has erred in ....

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....iction u/s 263 of the IT Act. 2. The Ld. AR advanced arguments assailing the impugned revision of the order whereas Ld. CIT-DR has submitted that no enquiries were conducted by Ld. AO on the flagged issues while framing the assessment and therefore, revision was justified in law. Having heard rival submissions and upon perusal of case records, our adjudication would be as under. 3. From case records, it emerges that during this year, the assessee engaged in contract work of State Highways Department and PWD department. Pursuant to search action u/s 132 on M/s SPK & Co. on 16- 07-2018, notice u/s 153C was issued to the assessee. The assessee admitted income of Rs. 205.50 Lacs after including certain additional income of Rs. 70.60 Lacs ....

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....etter addressed to DDIT (inv.) was not available in the assessment record. The assessee nowhere admitted the source of business income. The Ld. AO did not conduct any enquiry to verify the source of cash & jewellery. Finally Ld. AO was directed to cause necessary enquiries and invoke the provisions of Sec. 69A, if found applicable. Aggrieved, the assessee is in further appeal before us. Our findings and Adjudication 6. It is quite clear that cash was seized and certain jewellery was found from the assessee and a sworn statement was also recorded from him, on these aspects. The assessee admitted additional income to cover up for the shortfall in cash and jewellery in the return of income which has been accepted by Ld. AO. The said inco....