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TMI Blog2022 (6) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... o in Sub-Section (3) - HELD THAT:- It is surprising to note that neither the AO has called for the bank account from which such huge amounts of more than Rs.8 crores has been paid to the seller nor the assessee has filed any document before us that he has filed the bank account before the AO from which the payments were made. The submissions of ld. Counsel for the assessee that he has verbally explained the issue to the AO during the course of assessment proceedings cannot be accepted as proper inquiry by the AO during the course of assessment proceedings in absence of any query raised by the AO to this effect. So far as, the arguments of the ld. Counsel for the assessee that the Assessment Order in the case of Kulwant Kaur Kukreja Educa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case, in brief, are that the assessee is an individual and filed his return of income on 31.12.2016 showing total income of Rs.10,02,000/-. The assessee has shown income from running Hostel. The case was selected under limited scrutiny to examine the issue whether investment and income relating to properties are duly disclosed. Accordingly, notice u/s 143(2) of the I.T. Act was served on the assessee through e-filing portal on 18.09.2017. The AO also issued notice u/s 142(1) of the I.T. Act alongwith a questionnaire dated 09.02.2018 and 19.07.2018 which were duly served on the assessee. After considering the reply filed by the assessee, the AO completed the assessment accepting the returned income of Rs.10,02,000/-. 3. Subsequentl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as been carefully examined. It is noticed that the assessee has not provided any justification against violation of the provision of section 13(1) of I.T. Act which prohibits any trust/society from diverting its income directly or indirectly for the benefit of any person referred to in Sub-Section(3). Further, the assessee has not submitted the bank statements of either himself or the society to specify the nature of transaction made for the purchase of property and the source thereof. Moreover, the assessee has neither submitted any document stating that the property has been subsequently transferred to the society nor any statement of the current ownership of the property and status thereof in support of his claim that the property belong ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of assessment proceedings has asked for the details of purchase of the property and the assessee vide submission dated 03.07.2018 has filed a certificate from Kulwant Kaur Kukreja Educational Society confirming the purchase of property in the name of Sh. Himanshu Kukreja. He submitted that the balance sheet and schedule of fixed assets of the society was filed before the AO which show that the land in question was appearing in the schedule of fixed assets of the society. He submitted that during the course of assessment proceedings, the assessee has explained verbally regarding the purchase of property in the name of assessee individual but the payments were made from the bank account of the society. He further submitted that another part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iny. He submitted that if the provisions of Section 263 of the I.T. Act cannot be invoked in such type of cases then the provisions will become otiose. He accordingly submitted that the grounds raised by the assessee should be dismissed. 7. We have considered the rival arguments made by both the sides, perused the orders of the AO and ld. PCIT and the paper book filed on behalf of the assessee. We have also considered the various decisions cited before us. We find that the case of the assessee was selected under limited scrutiny to examine the issue as to whether investments and income relating to properties are duly disclosed. A perusal of the reply given by the assessee during the course of assessment proceedings show that the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Section 13(1)(c) of the I.T. Act etc. therefore, the order passed by the AO without examining the basic details in our opinion, makes the order erroneous as well as prejudicial to the interest of the revenue. We, therefore, uphold the order of the ld. PCIT in cancelling the assessment under the provisions of Section 263 of the I.T. Act with a direction to the AO to pass the fresh Assessment Order after due verification and after affording proper opportunity of being heard to the assessee. Accordingly, the grounds raised by the assessee are dismissed. SA No. 02/DDN/2021: 9. Since, we have decided the appeal, the Stay Application filed by the assessee becomes infructuous and accordingly, the same is dismissed. 10. In the result ..... X X X X Extracts X X X X X X X X Extracts X X X X
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