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TMI Blog2021 (3) TMI 562X X X X Extracts X X X X X X X X Extracts X X X X ..... us. Hon ble Apex Court in the case of Smt. Tara Devi Aggarwal vs. CIT, [ 1972 (11) TMI 2 - SUPREME COURT ], has held that the CIT may consider an order of the AO to be erroneous not only it contains some apparent error of reasoning or of law or of fact on the face of it but also because it is a stereo typed order which simply accepts what the assessee has stated in his return and fails to make enquiries which are called for in the circumstances of the case. The Assessing Officer cannot remain passive in the face of a return which is apparently in order but calls for further inquiry. By accepting the returned income without making any enquiry and deliberation on the points raised by the Lr. Pr. CIT, the assessment order is erroneous and prej ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not be passed. In reply, the assessee submitted that the amount of ₹ 86,054/- are actually not to a single party on the same day and the insurance payment is genuine. The above explanation of the assessee was not acceptable to Pr. CIT on the ground that firstly, in the absence of evidence or materials such as supporting bills, vouchers, details of the parties, payment aggregating to ₹ 86,054/- were made in violation of provisions of section 40A(3) of the Act and secondly, in respect of vehicle and machine insurance amounting to ₹ 70,353/-, Pr. CIT observed that in view of the first provisions of section to section 40A(3A), the same cannot be allowed. Therefore, Pr. CIT(A) holding the assessment order to be erroneous and pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order or made any enquiry and simply accepted the returned income by the assessee and there is no deliberation. When the circumstances of the case are such so as to provoke an enquiry, it is his duty to make proper enquiry. Failure to make enquiry in such circumstances would make the assessment order erroneous. The Hon ble Apex Court in the case of Smt. Tara Devi Aggarwal vs. CIT, 88 ITR 323 (SC), has held that the CIT may consider an order of the AO to be erroneous not only it contains some apparent error of reasoning or of law or of fact on the face of it but also because it is a stereo typed order which simply accepts what the assessee has stated in his return and fails to make enquiries which are called for in the circumstances of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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