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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 ..... of income for the assessment year 2009-10 on 25.9.2009 admitting total income of Rs. 8,58,540/-. The case has been selected for scrutiny under CASS and accordingly, notices u/s 143(2) & 142(1) of the Act were issued. In response to notices, the authorized representative of the assessee appeared from time to time and furnished required information. The assessment was completed u/s 143(3) of the Act, on 8.11.2011 determining total income of Rs. 20,08,036/- inter-alia making addition of Rs. 8,12,500/- u/s 40A(3) of the Act for cash payments in excess of Rs. 20,000/-, disallowance of interest paid to M/s. Image Shelters Pvt. Ltd. u/s 14A of the Act and disallowance of road roller rent u/s 40(a)(ia) of the Act, for failure to deduct tax at sourc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roneous in so far as it is prejudicial to the interest of the revenue. 4. In response to show cause notice, the assessee submitted that the assessment order passed by the A.O. is neither erroneous nor prejudicial to the interest of the revenue, as the A.O. has verified the issue of payments towards purchase of land other than by way of account payee cheque/drafts and disallowed an amount of Rs. 8,12,500/- where the assessee has made payments in excess of Rs. 20,000/- for purchase of lands. The assessee further submitted that the A.O. has called necessary details and the assessee has furnished copies of bank statements. The A.O. after satisfied with the explanations, completed the assessment by making disallowance of Rs. 8,12,500/- u/s 40A( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 40A(3) of the Act. Aggrieved by the CIT order, the assessee is in appeal before us. 6. The Ld. A.R. for the assessee, submitted that the Ld. CIT is not justified in assuming jurisdiction u/s 263 of the Act, in as much as the assessment order dated 8.11.2011 is neither erroneous nor prejudicial to the interest of the revenue. The A.R. further submitted that the Ld. CIT is not justified in directing the A.O. to enhance the disallowance u/s 40A(3) of the Act, without pointing out any specific defects in the details submitted by the assessee and did not make out even a prima facie case of any prejudice caused to the interest of the revenue. The A.R. further submitted that the assessee has furnished necessary details before the A.O. and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the authorities below. The CIT, assumed jurisdiction to revise the assessment order for the reason that the A.O. has not conducted proper enquiry of applicability of Section 40A(3) of the Act for payments towards purchase of land. The CIT, further observed that the bank statements furnished by the assessee indicate that the bank collected banking transaction tax on 2 occasions which attributes to the payment made by the assessee to the land owners for acquiring the lands. It emerge from the records that the assessee has not made payments to the landlord through the account payee cheques/drafts but paid the same through bearer/cash cheques which do not satisfy the provisions of section 40A(3) of the Act. Therefore, opined that the A.O. fa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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