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TMI Blog2017 (6) TMI 1037X X X X Extracts X X X X X X X X Extracts X X X X ..... statement. On perusal of the bank statement filed by the assessee, we find that on the date mentioned by the CIT in his order, there is no cash payments or bearer/cash cheques payments towards purchase of land. Therefore,the assessment order passed by the A.O. is neither erroneous nor prejudicial to the interest of the revenue. Hence, we set aside the order passed by the CIT, u/s 263 and restore the assessment order passed by the A.O. u/s 143(3) of the Act. - Decided in favour of assessee. - I.T.A.No.481/Vizag/2014 - - - Dated:- 28-3-2017 - SHRI V. DURGA RAO, JUDICIAL MEMBER, AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER For The Appellant : Shri G.V.N. Hari, AR For The Respondent : Shri G. Guruswamy, DR ORDER PER Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that certain omissions and commissions were noticed, which rendered the assessment order erroneous in so far as it is prejudicial to the interest of the revenue. The CIT, in the said show cause notice, observed that the assessing officer has failed to examine the applicability of provisions of section 40A(3) of the Act, for cash payments in excess of ₹ 20,000/- even though the bank statements furnished by the assessee indicate that the bank has collected banking transaction tax of ₹ 170/- on 10.6.2008 ₹ 200/- on 4.6.2008. The CIT, further, observed that the tax so collected is attributable to the payments made by the assessee to the land owners for acquiring the lands. It emerge from the above that the assessee has not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o far as it is prejudicial to the interest of the revenue, as the A.O. not only failed to examine the issue of applicability of provisions of section 40A(3) of the Act, towards cash payments for purchase of land, but also failed to apply his mind before completion of assessment. The CIT, further observed that although the A.O. has disallowed certain payments u/s 40A(3) of the Act, ignored certain payments, even though the bank statement furnished by the assessee indicates that the bank has collected banking transaction tax in respect of certain payments, which prove that the assessee has made the payments by way of bearer cheques towards purchase of land. The A.O. ought to have disallowed amount based on the evidence in the form of banking ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e amounts reflected in the bank statements with dates mentioned in his order to match banking transaction tax with corresponding payments to direct the A.O. to disallow amount u/s 40A(3) of the Act. The CIT, without any specific defects in the books of accounts, merely on suspicious grounds set aside the order passed by the A.O. and directed the A.O. to enhance the assessment to bring to tax certain payments u/s 40A(3) of the Act. 7. On the other hand, the Ld. D.R. strongly supported the order of the CIT. The D.R. further submitted that there is no whisper in the assessment order that the A.O. has examined the issue pointed out by the CIT with reference to bank statements and banking transaction tax recovered by the bank towards payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the CIT, for the reason that during the assessment proceedings, the A.O. has verified cash payments with reference to books of accounts and bank statement filed by the assessee and disallowed certain cash payments u/s 40A(3) of the Act. We further observed that the CIT failed to point out specific defects in the books of accounts and did not make out even a prima facie case of any prejudice caused to the interest of the revenue. The CIT, merely on suspicious grounds directed the A.O. to disallow certain payments on the pretext of banking transaction tax debited by the bank in the statement. On perusal of the bank statement filed by the assessee, we find that on the date mentioned by the CIT in his order, there is no cash payments or bearer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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