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TMI Blog2018 (8) TMI 1547X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT. In view of this, we uphold the order of the CIT passed u/s 263 dated 11/2/2016 holding that the assessment order passerby the AO u/s 143(3) of the Act on 28/2/2014 is erroneous and prejudicial to the interest of the Revenue. Appeal of the assessee is dismissed. - ITA No. 1569/DEL/2016 - - - Dated:- 23-8-2018 - SH. S. K. YADAV, JUDICIAL MEMBER AND SH. PRASHANT MAHARISHI, ACCOUNTANT MEMBER For The Appellant : Sh. Sameer Kapoor, CA For The Respondent : Smt. Meeta Singh, CIT DR ORDER PER PRASHANT MAHARISHI A.M. 1. This appeal is filed by the assessee against the order of the Commissioner of Income Tax- Noida [ The LD CIT] passed u/s 263 of the Income Tax Act, 1961 [ The Act] on 11/2/2016 holding that assessment order passed by the Income Tax Officer, Ward-3(3), Noida [ The Ld AO] u/s 143(3) of the Act on 28/2/2014 for Assessment Year [ AY] 2011-12 is erroneous and prejudicial to the interest of the Revenue. 2. The grounds of appeal of the assessee challenging the order passed by the CIT are as under :- 1. Whether the Ld. Pr. CIT has erred in law and circumstances of the case in cancelling the assessment u/s 263 and restoring the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs and ₹ 5 lacs were received from the wife of the assessee out of the immediate withdrawal from her bank account. The assessee substantiated the same with the cash flow statement of the wife of the assessee and summary of cash deposited and withdrawal in her account. The Ld. CIT stated that the assessee has submitted that ₹ 5,10,000/- received from the customers and is forming part of the gross receipts of the assessee is not acceptable as the amount deposited were not supported by any details including the names of the parties who have given the same. It was further stated that the amount deposited in cash was immediately transferred to PNB Housing Finance Ltd. as investment or as fixed deposit so there was no purchase of material on behalf of the clients. It was further held by him no explanation was given by the assessee about ₹ 1 lac deposited on 16/12/2010. With respect to the deposit of ₹ 5 lacs it was stated that on perusal of the bank account of the wife of the assessee that cash was deposited in the month of January 11/2011 of ₹ 5 lacs In three trenches and on 10/2/2011 ₹ 5 lacs were withdrawn and subsequently on 10/2/2011 ₹ 5,50, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15.94 lacs and deposited the cash of ₹ 22.44 lacs and, therefore, net cash available in her hand was ₹ 1,90,000/-. He, therefore, submitted that all these issues were examined by the A.O. during the course of assessment proceedings. He submitted that when the issue has been examined by the A.O during the course of assessment proceedings, Ld. CIT does not have any authority to hold that order passed by the A.O is erroneous and prejudicial to the internet of Revenue. 6. The Ld. DR vehemently contested that the explanation (2) has been inserted in Section 263 of the Act w.e.f 1/6/2015 which provides that any order passed without making enquiries or verification which should have been made and allowing any relief without enquiring into the claim, such orders are erroneous and prejudicial to the interest of the Revenue. He further submitted that assessee has deposited ₹ 10.10 lacs in cash and the Ld. Assessing Officer was explained only the deposited up to ₹ 9.10 lacs which itself shows that there is a non application of mind by the Assessing Officer . He further submitted that the query letter dated 18/11/2013 issued by the Ld. Assessing Officer vide Item No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not examined the source of deposit of ₹ 10.10 lacs in cash in the bank account of the assessee. (ii) The claim of the deduction under Chapter VIA of ₹ 1,97,000/- allowed by the A.O without any documentary evidence. 9. Firstly, we come to the issue of cash deposit of ₹ 10.10 Lakhs. Apparently, the assessee was asked vide letter dated 18/11/2013 vide Para No. 4 about the cash deposit in bank account of ₹ 10,10,000/-. The A.O. further asked that reply should be made with supporting documentary evidences. The assessee submitted vide letter undated the details of cash deposit of ₹ 4,10,000/- stating that it is received from various customers for renovation work and deposited in the bank account. However, CIT found that it was used for depositing in Housing loan account or investment. Therefore, the submission before the ld AO was found not correct. Further, the assessee submitted that he has received ₹ 5 lacs for housing loan from his wife, which is deposited in the bank account. However, no supporting evidences were placed before the Assessing Officer with respect to both the above nature of deposits. Further, out of the 10,10,000/- cash depos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essing Officer, and if the enquiries conducted are reasonable then the Ld. CIT despite explanation (2) to Section 263, cannot revise orders passed by the ld AO. However, if there is no iota of any enquiry made by the Ld. Assessing Officer then it cannot be said that the power of the revision invoked by the Ld.CIT is unsustainable. We have carefully considered the decision cited by the Ld. AR at 70 Taxman.com 227 which in-fact vide Para No. 20 says that the above provision shall apply if the order has been passed without making enquiries or verification which a reasonable and prudent officer shall have carried out in such cases. In the present case, when the A.O even did not care to obtain necessary documentary evidence to reconcile the amount of cash deposit with the explanation of the assessee where a short fall ₹ 1 lac is shown and accepted the explanation of receipt of ₹ 5 lacs from the wife of the assessee without any documentary evidence, then, non fault can be found with the order of the Ld. CIT. In view of this, we uphold the order of the Ld. CIT passed u/s 263 of the Act dated 11/2/2016 holding that the assessment order passerby the ld AO u/s 143(3) of the Act o ..... 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