TaxTMI 
TaxTMI 
2025 (6) TMI 398
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.... invoking provisions of Section 263 of the Act seeking to revise scrutiny assessment U/s 143(3) of the Act holding it as erroneous and prejudicial to interest of revenue. The order of A.O. is neither erroneous nor prejudicial to the interest of revenue and as such order of Ld. CIT is unjust, untenable and against principles of Natural Justice that deserve to be quashed. 2. The Ld. CIT erred in law and on facts in holding that appellant has not furnished any details of nature and sources of undisclosed income of Rs. 1,01,00,000/- admitted during the survey and is required to be taxed U/s 69A r.w.s 115BBE of the Act. The Ld. CIT has failed to appreciate that A.O has passed the order after proper verification of documents submitted in response to notice U/s 142(1) of the Act. The erroneous order of Ld. CIT deserves to be quashed. 3. Ld. CIT ought to have appreciated that non discussion of issues, verified and accepted by A.O after proper scrutiny need not mean order as erroneous or prejudicial to the interest of revenue. 4. The Ld. CIT has erred in law and on facts for not providing opportunity being heard in person in spite of being specifically requested. The denial of perso....
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....ideration the issues as discussed by him in the order u/s 263 of the Act. 6. Aggrieved by the order of the Ld. PCIT, the assessee is now in appeal before the Tribunal. 7. Before us, the Ld. AR supported the order of the Assessing Officer and the Ld. DR supported the order of the Ld. PCIT. The Ld. AR relied on the statement recorded u/s 131 of the Act. Question No.10 reads as under (Shreeji Infra):- Q.10 In diary (Legendary Architect) A-1 in which total written pages are 18. On page number 3, 4 and 5 of different days in April, May, June, July and August some amount are mentioned, which appears to be your undisclosed income, please throw light on these numbers. Ans. The amount mentioned on these three pages are shown in different months, this is the cash income received from the booked houses of Auroville in the current financial year, out of which the total cash income is also shown, which has not been shown in the previous year but received in this financial year. This cash income for the month April is 23 lakhs, for the month of May is 22.25 lakhs, for the month of June is 21.75 lakhs, for the month of July is 21.75 lakhs and for the month of August 33.25 lakhs, totalling t....
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.... I have given the answers to the above questions in good faith and without any threat or pressure which is acceptable to us. I know it is a crime to lie under oath. 9. The ld. AR further argued that the assessee has given entire details of the undisclosed income and submitted that the income declared during the survey is to be taxed as income from business only unless any contrary evidences are found in the survey. It was argued that in the instant cases no contrary evidences were found or were brought on record by the AO during the assessment proceedings. Hence, it is not an erroneous order. Ld. AR relied upon the judgements in the case of ... * D.N. Singh Vs. CIT, 45 ITR 595 * CIT Vs. Kamal Galani, 95 taxmann.com 261 * CIT Vs. Kamal Galani, 110 Taxmann.com 213 * Chokshi Hiralal Maganlal Vs. DCIT, 46 SOT 349 * M/s. Bajaj Sons Ltd Vs. DCIT, 128 Taxmann.com 406 * Gaurish Steels Pvt Ltd. Vs. ACIT, 82 taxmann.com 337 * CIT Vs. Shilpa Dying & Printing Mills Ltd, 39 Taxmann.com 3 10. The Ld. AR argued that since detailed examination of books of accounts and other supporting evidences were examined by the AO, nothing adverse can be inferred. On the other hand, the Ld. D....
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....ssessee for such financial year." 14. We have examined as to how the provisions of the Act are applicable to the facts of the case. Where in any financial year the assessee is found to be the owner of any money, bullion, jewellery or other valuable article and such money, bullion, jewellery or valuable article is not recorded in the books of account, if any, maintained by him for any source of income, The fact of receipt of monies have not been recorded in the books of accounts maintained by the assessee. and the assessee offers no explanation about the nature and source of acquisition of the money, bullion, jewellery or other valuable article, The assessee explained about the nature and source in question Nos. 10 and 17 to 22. That the cash amounts have been received by the members and if proved so, rightly the amount has to be added in the hands of the payers. The assessee has not furnished any confirmations from the persons from whom the amounts have been purportedly received. or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, The explanation offered by the assessee was duly accepted by the Assessing Officer without maki....
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....n postulates an error which makes an order unsustainable in law. 11. The Assessing Officer is both an investigator and an adjudicator. If the Assessing Officer as an adjudicator decides a question or aspect and makes a wrong assessment which is unsustainable in law, it can be corrected by the Commissioner in exercise of revisionary power. As an investigator, it is incumbent upon the Assessing Officer to investigate the facts required to be examined and verified to compute the taxable income. If the Assessing Officer fails to conduct the said investigation, he commits an error and the word erroneous includes failure to make the enquiry. In such cases, the order becomes erroneous because enquiry or verification has not been made and not because a wrong order has been passed on merits." In the case of Gee Vee Enterprises Vs. ACIT (supra), the Hon'ble Delhi High Court held as under:- "(14) The reason is obvious. The position and function of the Income Tax Officer is very different from that of a civil court. The statements A made in a pleading proved by the mininum amount of evidence may he accepted by a civil court in the absence of any rebuttal. The civil court is nuctral. It si....