9911796707
TMI Blog2019 (9) TMI 1291X X X X Extracts X X X X X X X X Extracts X X X X ..... its initial onus by furnishing income tax return, confirmation, source of funds available with the lender etc. Therefore, it is correct that the assessee has discharged its onus cast upon him. Thereafter if material gives any indication than the ld AO should have made further enquiry. No such material has been shown by the ld CIT from the assessment records. Thus on this issue, it cannot be said that AO should have been made any further enquiry. Thus, n the issue of verification of unsecured loan, we do not find that there is lack of due inquiry. Purchase and sales - assessee has explained before the ld CIT, that tax component which is debited or credited to the parties account along with net sales value and only net sales is shown in the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is ordered tentatively in the conspicuous absence of either an error or prejudice and merely on the erroneous basis that necessary enquiries have not been made. The order being ab initio illegal and void must be quashed." 3. Briefly stated the facts of the case shows that assessee is an individual, who filed her return of income on 18.09.2014 declaring net taxable income of ₹ 584020/-. The return of income was selected for scrutiny through CASS with reason "low net profit or loss‟. Subsequently, the assessment u/s 143(3) of the Act passed on 27.12.2016 at returned income holding that the assessee is engaged in trading in gold bars under the name & Style of M/s. Swaran Traders as a proprietary concern. Thus, the return of incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to the difference between the party wise sales and purchase amount and its reflection in profit and loss account, shows that the difference of ₹ 9183981/- in sales and ₹ 8719753/- in purchase. Thus, no enquiry was made by the ld AO on this issue. Consequently, it was held that the assessment order passed on 27.12.2016 is erroneous and prejudicial to the interest of revenue. 6. Before us the ld AR submitted that the ld AO has made a detailed enquiry with respect to the unsecured loan from Mr. Jagjit Singh. He referred to page No. 8 of the paper book which is a letter dated 18.11.2016, wherein, copy of the confirmation along with bank account was furnished. He submitted that primary onus cast upon the assessee has been discharg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us decisions. 8. We have carefully considered the rival contentions and also perused the orders of the ld AO and Pr. CIT. According to the provisions of section 263 of the Act, after examination of records, the ld CIT finds that the order is erroneous and prejudicial to the interest of the revenue, then, he has power to revise such orders. Explanation 2 to that section has been inserted w.e.f 01.06.2015 of Finance Act 2015, wherein, in clause (a) it is provided that if an order is passed without making enquiry or verification which should been made, the order passed by the ld AO shall be deemed to be erroneous insofar as it is prejudicial to the interest of the revenue. In the present case the assessee is engaged in trading in gold bars un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid to be difference but the correct accounting method. Naturally at the time of sale the assessee credits net off tax in profit and loss account and debit the whole amount including tax in the account of the debtors. Similarly, purchases are made by debiting the trading account by net off purchase and crediting whole amount including taxes to the account of the creditors. These details were already enquired by the ld AO. The ld Pr. CIT in his order has not mentioned what further enquiry AO might have made. Whenever an explanation 2(a) is invoked, it is mandatory for the CIT, to show what are the enquiries on the basis of information available on record should have been made by the ld AO and also that those enquiries have not been made. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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