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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 ..... and examining the documentary evidences and explanations as furnished by assessee reached the conclusion that the cash deposits in the bank account are from verifiable sources. It was submitted that during the assessment proceedings, the assessee had furnished the financial statements for earlier years and the AO duly verified the same and no adverse material had been found and accordingly the AO accepted the income declared by the assessee. 3. It was further submitted that on 04/03/2021, the ld PCIT had issued a show cause notice 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 w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld PCIT has not arrived at any independent finding for issuance of notice under s. 263. Further, a thorough enquiry has been conducted by the AO which comprised of questionnaire to which the assessee has submitted his reply, thereafter there is a notice under s. 142(1) with a query letter to which again the assessee has replied to the queries, so it is evident that there has been a detailed investigation and enquiry conducted by the AO. When such judicially exercise has been apparently made by AO, therefore the order of the 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 Rs. 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 Rs. 46.57 lakhs. However, it was noticed by the ld PCIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... declared in the respective ITRs. Therefore, the cash in hand of Rs. 46.57 lakhs claimed to be available as on 31.03.2014 remained to be duly examined and verified by the Assessing Officer. Further, the ld PCIT has observed that given that there are cash withdrawals during the year inspite of having opening cash in hand, the veracity of opening cash in hand has been doubted and basis the same, the ld PCIT has assumed the jurisdiction u/s 263 of the Act and we find that basis almost identical reasoning 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome, books of accounts, bank statements and to explain the nature and source of cash deposits in saving bank accounts maintained by the assessee. In response, the assessee has submitted copy of his return of income, computation of income, bank statements, personal cash book, ledger, copy of capital account and balance sheets for A.Y 2014-15, A.Y 2015- 16 and A.Y 2016-17 showing the opening and closing cash in hand and has also submitted the nature and source of cash deposits during the year 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 scruti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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