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TMI Blog2021 (9) TMI 410X X X X Extracts X X X X X X X X Extracts X X X X ..... ledged this fact that the details of transactions in respect of cash deposits and withdrawals have been duly submitted by the assessee during the assessment proceedings. The submissions so made have been examined by the AO as evident from clear affirmation thereof by the AO in the assessment order. The matter has been duly examined by the AO with focus on cash deposits and withdrawals transactions made by the assessee during the year for which the matter was selected for limited scrutiny - where the AO has examined the personal cash book maintained by the assessee showing cash in hand, deposits and withdrawals made during the year and the opening and closing balances of cash in hand are duly reflected in the respective balance sheets of previous and subsequent years, we find that the AO has taken all reasonable steps as are expected to be taken to verify the subject transactions in terms of nature and source of such deposits. Balance sheets not just reflect the cash in hand rather reflect the state of affairs in terms of assets and liabilities as on the close of the financial year including the net results of the activities undertaken by the assessee during the year - wher ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e u/s 263 of the Act and observed that the assessment order passed by the AO is erroneous as well as prejudicial to the interest of revenue. It was submitted that the assessee had furnished the reply in response to show cause notice and explained that the source of cash deposits which are supported with documentary evidences. Further, it was clarified that in the ITR, only the particulars of business are required to be reported. However the personal statement of affairs as maintained by the assessee are not reported but same was produced before the AO and the AO had verified and treated the same as genuine and accordingly the claim had been accepted. It was submitted that the ld PCIT without considering the submission and evidence furnished by the assessee in judicial manner has held the order passed by the ld AO as erroneous in so far as it is prejudicial to the interest of Revenue. 4. It was further submitted that the AO had exercised the quasijudicial power vested in him in accordance with law and arrived at conclusion on the basis of legal valid documentary evidences and such a conclusion cannot be termed to be erroneous simply because the Commissioner does not feel satisf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AO cannot be branded as erroneous and prejudicial to the interest of the Revenue. It was accordingly submitted that the exercise of jurisdiction under s. 263 by the PCIT is not valid in eye of law and the order so passed therefore may be set-aside. In support of his contentions, the ld AR has relied upon various Courts and Tribunal decisions. 7. Per contra, the ld. CIT/DR submitted that a perusal of the record shows that during the year under consideration, the assessee has deposited cash of ₹ 72.34 lakhs in his bank account and a major part of this cash was claimed to be out of opening cash in hand of ₹ 46.57 lakhs. However, it was noticed by the ld PCIT that the assessee had not furnished any detail in Part A- BS of his ITR filed for the A.Y. 2015-16 and the balance sheets prepared and filed during the course of assessment proceedings for the AY 2014-15, 2015-16 and 2016-17 has got no authenticity as the details mentioned in them have not been shown/declared in the respective ITRs. Hence, the cash in hand of ₹ 46.57 lakhs claimed to be available as on 31.03.2014 remained to be duly examined and verified by the Assessing Officer. It was submitted that the vera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... soning as seen from the final findings recorded by the ld PCIT, the assessment order has been held as erroneous in so far as prejudicial to the interest of Revenue. It thus appears that the ld PCIT had already reached a definite conclusion at the time of issue of the show-cause itself that the assessment order so passed by the AO was erroneous in so far as prejudicial to the interest of Revenue and the submissions so filed by the assessee during the revisionary proceedings doesn t find any favour with him. 9. Now coming to the reasoning so adopted by the ld PCIT, we find that though the ld PCIT has accepted the fact that the assessee has submitted the details of the transactions relating to cash deposits and withdrawals during the year as well as balance sheets and ITRs for the year under consideration and other two years, the claim of the assessee that cash deposits have also been made out of opening cash in hand has not been accepted for the reason that the assessee had not furnished any detail in Part A- BS of his ITR filed for the impugned assessment year i.e, A.Y. 2015-16 and secondly, the balance sheets for the three years including the year under consideration has no auth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar under consideration. Infact, the ld PCIT has also acknowledged this fact that the details of transactions in respect of cash deposits and withdrawals have been duly submitted by the assessee during the assessment proceedings. The submissions so made have been examined by the AO as evident from clear affirmation thereof by the AO in the assessment order wherein the AO has stated that the A/R of the assessee has attended the proceedings from time to time and furnished his written submission alongwith copy of return, cash book, ledger, personal balance sheet, bank statements etc. and the submission furnished by the assessee has been examined and verified keeping in view the reasons for which scrutiny selection was initially done. We therefore find that the matter has been duly examined by the AO with focus on cash deposits and withdrawals transactions made by the assessee during the year for which the matter was selected for limited scrutiny. Further, where the AO has examined the personal cash book maintained by the assessee showing cash in hand, deposits and withdrawals made during the year and the opening and closing balances of cash in hand are duly reflected in the respective ..... 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