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TMI Blog2020 (6) TMI 194X X X X Extracts X X X X X X X X Extracts X X X X ..... in the circumstances of the case: - 1.The notice issued under section 263 by the Principal Commissioner of Income Tax (Central) (hereinafter referred to as "Pr CIT") and the order passed under section 263 are illegal, bad in law and without jurisdiction. 2.That having regard to the facts and circumstances of the case, Pr. CIT has erred in law and on facts in assuming jurisdiction in passing the order u/s 263, more so when the assessment order passed under section 143(3) is neither erroneous nor prejudicial to the interest of Revenue. 3.That the Id Pr. CIT (Central) erred in facts and circumstances of the case, that the Id AO did not verified the cash deposits amounting to Rs. 29,40,OOO/-in the bank account during the year under consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssued by Ld. Pr. CIT u/s 263 of the Act holding that the order of the assessing officer dated 08.11.2016 is erroneous and prejudicial to the interest of revenue and is liable to be set aside and thus erred by giving direction to the assessing officer to reframe the assessment after examining the issues of non-verification of source of cash deposit of Rs. 29,40,000/- made during financial year 2013-14. Ld. Counsel for the assessee referring to the synopsis and paper book filed on 01.01.2020 as well as 07.02.2020 submitted that the assessing officer has called for specific details about the cash deposit. Necessary replies were furnished during the assessment proceedings along with details including copies of capital accounts of the partnershi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upon the assessee calling for the details of source of cash deposit of Rs. 29,40,000/- alleging that the assessing officer failed to conduct enquiry about these cash deposits during the assessment proceedings. 7. Ld. Counsel for the assessee gave detailed reply submitting that the assessee had earned exempt income including share of profit from partnership firm. Total exempt income earned for A.Y. 2014-15 is Rs. 3,14,93,363/- and the other taxable income is Rs. 6,45,210/-. It was also submitted that detailed enquiry was conducted and all details were filed on various dates which also included the cash book and capital account of partnership firms to support the fact that the regular transactions of cash deposits and withdrawal took place d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uiry has been conducted by the assessing officer. 9. The Ld. assessing officer has conducted detailed enquiry and was satisfied with the source of cash deposit of Rs. 29,40,000/- in the bank account during the year. During the course of assessment proceedings before the Ld. Pr. CIT complete details of the source of deposits were again filed and summary of source of cash deposits on six instances which total to Rs. 29,40,000/- is reproduced below: Date Amount of cash deposit Source of deposit 03.10.2013 5,00,000 Out of cash balance lying in the cash book 04.10.2013 2,80,000 Out of cash balance lying in the cash book 20.11.2013 6,10,000 Out of cash balance lying in the cash book particularly by withdrawing Rs. 6,50,000/- from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orate discussion in that regard." 12. Further in the case of Krishna Capbox(P) Ltd. (2015) 372 ITR 310(Allahabad) held that "where assessing officer passed assessment order after certain queries from assessee mere nondiscussion or non-mention thereof in assessment order could not lead to assumption that assessing officer did not apply his mind; invoking of revision proceeding under section 263 on said ground was unjustified." 13. We also find that recently Coordinate bench, Kolkata in the case of Satya Prakash Sharma vs. Pr. CIT vide ITANo.2574 to 2576/Kol/2018 order dated 22.11.2019 adjudicating similar issue laid down the proposition that "wherein enquiry was conducted by the assessing officer, even if inadequate, that would not by itse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, the assessing officer in the body of the assessment order did not record any observation regarding the transaction of cash deposits in the bank but the questionnaire issued during the course of assessment proceedings and various replies filed by the assessee shows that during the course of assessment proceeding specific query is raised regarding cash deposits in bank, calling of bank statements and other statement. To this specific query there is a specific reply given by the assessee which demonstrates that after receiving the information the assessing officer had applied his mind on these transactions. More over the ld. CIT(A) has given a swiping statement that transaction between the assessee and the partnership firm (wherein assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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