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TMI Blog2017 (5) TMI 1314X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee that any questionnaire issued or any details were called for by the AO during the course of assessment, the AR submitted that no such questionnaire and details were called for by the AO. Therefore, we are inclined to accept the action of the CIT in exercising his power u/s 263 in setting aside the order of the AO passed u/s 143(3) and directed to redo the assessment. Accordingly, we uphold the order of the CIT and dismiss the grounds raised by the assessee. Addition u/s 40A - AO made addition as the assessee has made the payments by way of cash exceeding ₹ 20,000/- - Held that:- Before the CIT(A), the assessee in his written submissions stated that he has incurred diesel expenses of ₹ 12,71,116/- during the year under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me of ₹ 1,72,996/- on 07/08/2009, which was processed u/s 143(1) of the Act. Thereafter assessment was completed u/s 143(3) accepting the return filed by the assessee. 4. Thereafter, the CIT by exercising his power u/s 263 of the Act called for the assessment records of the assessee and after examining the same, came to a conclusion that the AO has not examined the bank accounts and also certain payment made by the assessee which were exceeded more than ₹ 20,000/-. The CIT recorded a finding that the AO in the course of assessment proceedings u/s 143(3) has not examined the details properly, therefore, the assessment made u/s 143(3) has been rendered erroneously and hence, the same is prejudicial to the interests of revenue. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h exceeded ₹ 20,000/- and simply accepted the return filed by the assessee. We also find that the CIT has correctly set aside the order of the AO and directed to redo the assessment as the AO has not made any enquiry and no details were called for, but, simply accepted the return filed by the assessee. When the Bench has specially pointed out to the ld. AR of the assessee that any questionnaire issued or any details were called for by the AO during the course of assessment, the ld. AR submitted that no such questionnaire and details were called for by the AO. Therefore, in the totality of the facts and circumstances of the case, we are inclined to accept the action of the CIT in exercising his power u/s 263 in setting aside the order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elated to M/s Madhuri Agencies in which the assessee is a partner and, therefore, the addition cannot be made in the hands of the assessee. The CIT(A) simply rejected the submissions of the assessee on the ground that the account maintained by the assessee and, therefore, it cannot be said that the amount belonging to the firm i.e. M/s Madhuri Agencies. Accordingly, he confirmed the action of the AO. 12.1 As regards the disallowance of diesel expenses to the tune of ₹ 3,17,825/- u/s 40A(3), the assessee in his written submissions stated that he had incurred diesel expenses of ₹ 12,71,116/- during the AY ₹ 12,71,116/- and not ₹ 3,17,825/- as stated by AO. He further stated that the assessee had not violated the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the submissions of the assessee and confirmed the addition made by the AO. The only issue to be decided by us is whether the deposits belonging to the assessee or to the firm M/s Mahduri Agencies ?. The issue needs a detailed examination, and therefore, to meet the ends of justice, we remit the issue back to the file of the AO with a direction to examine all the details and decide the issue in accordance with law after providing reasonable opportunity of being heard to the assessee. The assessee is directed to substantiate his claim before the AO by way of documentary proof. 17. As regards the disallowance of diesel expenses to the tune of ₹ 3,17,825/- u/s 40A(3) is concerned, the ld. DR invited the bench attention to the paper bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ever, the amount mentioned by the AO and the amount mentioned by the ld. DR are not matching and there is a difference in the total amount. Thus, we set aside the order passed by the CIT(A) and remit the matter back to the file of the AO with a direction to examine the ledger account of the assessee and, if, he found any violation by the assessee in making the cash payments exceeding ₹ 20,000/-, invoke the provisions of section 40A(3) and decide the issue in accordance with law. 20.1 So far as the argument of the ld. Counsel for the assessee that the revenue s appeal is not maintainable as the appeal is below ₹ 10/- lakhs, ld. DR submitted that this case is taken up for scrutiny as objected by the audit party and, therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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