2025 (2) TMI 1643

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....Y 2017-18. 2. Brief facts of the case are that the assessee is an individual who has not filed income tax return for the impugned assessment year. As per the information available in ITBA, the Ld. AO noticed that the assessee has deposited an amount of Rs. 1,44,68,710/- in his Current Account No. 1271102000000602 maintained with IDBI Bank. Further, the assessee has also deposited a sum of Rs. 17,10,900/- in his Savings Bank account No. 1271104000007351 maintained with the IDBI Bank. After obtaining necessary approval from the Competent Authority, the Ld. AO initiated the proceedings U/s. 147 of the Act and notice U/s. 148 of the Act dated 29/03/2021 was issued and served on the assessee. In response to the notice U/s. 148 of the Act, the....

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....ted the information vide his letter dated 14/11/2023 through email. After examining the submissions made by the assessee, the Ld. PCIT considered that the assessee has failed to furnish the basic information as detailed in para 8 of the order. Therefore, he treated the assessment order of the Ld. AO as erroneous and prejudicial to the interests of the Revenue in the absence of any corroborative evidence filed by the assessee and thereafter, directed the Ld. AO to treat the cash deposits as unexplained credits and the same shall be the income of the assessee for the impugned assessment year. On being aggrieved by the order of the Ld. PCIT, the assessee is in appeal before us by raising the following grounds of appeal: "1. The order ....

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.... U/s. 263 of the Act in respect of an issue with regard to which an appeal is pending before the Ld. CIT(A) is outside the scope of section 263 of the Act?" 5. Grounds No. 1 and 6 are general in nature and need no adjudication. 6. Grounds No.2 to 5 challenges the jurisdiction U/s. 263 of the Act by the Ld. PCIT. On this issue, the Ld. AR submitted that the assessee does not possess the license issued by the Andhra Pradesh Prohibition and Excise Department for carrying on the business of liquor and therefore, assessee carrying on the business as an associate wherein the license is in the name of Shri P. Narayana Rao. The Ld. AR further submitted that the assessee has disclosed the same business and has offered income U/s. 44AD of the A....