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TMI Blog2022 (6) TMI 939X X X X Extracts X X X X X X X X Extracts X X X X ..... he consideration arrived at by the Ld. PCIT in invoking the revisionary proceedings u/s. 263 of the Act for holding the order passed u/s. 144 dated 26.10.2017 as erroneous in so far as it is prejudicial to the interests of revenue and thereby setting it aside with a direction to the AO to call for all the details in respect of sources for the deposit of cash and verify them to make fresh assessment order by giving adequate opportunity to the assessee. Accordingly, the appeal of the assessee is dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... ve been filed by 16.05.2020 whereas, it has been filed by post on 05.10.2021. It is submitted by the assessee that there is a delay from the start of the Covid-19 pandemic in March, 2020. After that, the Hon'ble Supreme Court in its decision in suo moto Writ Petition (Civil) No.3/2020 dated 10.01.2022 had held that the period from 01.03.2020 to 28.02.2022 should be excluded while reckoning limitation period. Further, the Hon'ble Supreme Court has allowed 90 days from 01.03.2022 to file the belated appeals. Accordingly, the Counsel claimed that this appeal is filed within the time permitted by the Hon'ble Supreme Court and thus, prayed for its admission by condoning the delay. The assessee has put on record an Affidavit explaining the reason ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accounts so obtained. Ld. AO made an addition of Rs. 3.5 lakhs being the value of highest deposit in Axis bank and Rs. 2 lakhs in HDFC bank totaling to Rs. 5.5 lakhs by treating it as undisclosed income under the head income from other sources. 6. Subsequently, Ld PCIT observed form the perusal of records that if the cash deposits of Rs. 37,98,237/- in savings bank account in HDFC bank and Rs. 19,25,300/- in Axis bank totaling to Rs. 57,23,537/- are assessee's business income, the assessee should have shown it as turnover in the profit and loss account. Ld. PCIT thus observed that these cash deposits in savings bank accounts are not out of business transactions and ought to have been treated as unexplained and added to the total income of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts in the savings bank account of the assesse with HDFC bank and Axis bank, whereby an addition of Rs. 5.5 lakhs was made by taking the value of highest deposits in each bank. He further submitted that it is not a case where AO has not made any enquiry on the issue under consideration and therefore, the impugned order u/s. 263 of the Act ought to be quashed. 8. Ld. Sr. DR strongly opposed and submitted that the assessment order passed u/s. 144 of the Act is out of the reason that despite several opportunities given by the AO, assessee neither came forward to attend the hearing nor chose to furnish particulars required out of him. From the statement of savings bank account of the two banks obtained by the AO directly from the said two banks ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n which is prejudicial to the assessee, rendered by the jurisdictional High Court or Supreme Court in the case of the assessee or any other person." 8.1 Ld. Sr. DR further pointed out that even in the revisionary proceedings before the Ld. PCIT, no one appeared on behalf of the assessee nor any details are furnished in respect of the issue of cash deposit in the savings bank accounts of the assessee. It appears that the assessee has nothing much to say on the issue dealt in the impugned proceedings. In the course of hearing before us, attention was also invited of the bench to the consequential assessment order passed by the Ld. AO u/s. 143(3) r.w.s. 263 of the Act dated 16.04.2021 giving effect to the impugnedorder passed u/s. 263 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ash in the two savings bank accounts totaled to Rs. 57,23,537/-, which is far in excess of turnover of Rs. 5.10 lakhs shown by the assessee as turnover in his profit and loss account. Also Ld. PCIT has noted that the assessee has done commodity and share trading during the year in respect of which nothing has been dealt or referred to by the Ld. AO in the assessment order. 11. We find that Ld. AO has completed the assessment without making enquires or verification which should have been made in respect of deposit of cash in the savings bank accounts of the assessee with HDFC bank and Axis bank, more particularly when the case was selected for assessment with limited scrutiny for the reason that "cash deposit in savings bank accounts is mor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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