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TMI Blog2022 (8) TMI 949X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee has rightly discharged his duty of disclosing the undisclosed income as intimated to the assessee by the AO and paid taxes accordingly, which was also recorded in the order of the AO. We, therefore, find that the order of the AO is neither erroneous nor prejudicial to the interest of the revenue. We hereby set aside the order of the Ld. Pr. CIT passed u/s.263 of the Act and restore the order of Ld. AO - Appeal of assessee allowed. - I.T.A. No. 200/Viz/2021 - - - Dated:- 28-7-2022 - SHRI DUVVURU RL REDDY , HON BLE JUDICIAL MEMBER And SHRI S BALAKRISHNAN , HON BLE ACCOUNTANT MEMBER Appellant by : Shri C. Subrahmanyam , AR Respondent by : Shri MN Murthy Naik , CIT ( DR ) ORDER Per Shri Duvvuru RL Reddy , Judici ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otice dated 18.02.2020. The assessee's representative filed detailed reply dated 25.02.2020. Considering the reply filed by the assessee, the Ld. Pr. CIT considered the order of the AO passed u/s. 143(3) r.w.s. 147 dated 05.12.2017 for the A.Y. 2016-17 as erroneous and prejudicial to the interest of the revenue. The Ld. Pr. CIT directed the AO to re-examine the issues and complete the assessment de-novo in accordance with law after providing reasonable opportunity to the assessee. Based on the directions of the Ld. Pr. CIT, the AO passed consequential order u/s. 147 r.w.s. 263 r.w.s. 144B of the Act, making an addition of Rs. 19,93,291/-, being the deficit cash balance found during the survey proceedings. 3. Aggrieved by the order of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to have known that the proceedings u/s. 263 of the IT Act can be initiated only when the AO order is, not only erroneous but also prejudicial to the interest of the revenue, both the conditions shall co-exist, however, in the present case, AO order is not erroneous in as much as the issue that was considered for review u/s. 263 of the IT Act has been examined in the assessment proceedings, therefore, AO order is not prejudicial to the interest of the revenue. 6. For these and other reasons that are to be urged at the time of hearing of the appeal the appellant prays that the order passed by the learned Pr. CIT is erroneous both on facts and as well as in law, therefore, the same needs to be set aside in the interest of justice. 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iability. The AO has carefully considered the additional income offered by the assessee during the survey proceedings and concluded that the assessee has paid the tax including the undisclosed income detected during the survey. Explanation 2 to section 263 of the Act requires the AO to cause enquiries and verification before passing the assessment order. We find from the order of the AO that the show cause notice was issued to the assessee to disclose the undisclosed income and pay tax accordingly. The assessee has rightly discharged his duty of disclosing the undisclosed income as intimated to the assessee by the AO and paid taxes accordingly, which was also recorded in the order of the AO. The Jurisdictional High Court in the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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