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TMI Blog2022 (10) TMI 1042X X X X Extracts X X X X X X X X Extracts X X X X ..... ere not made by AO during reassessment proceedings. The learned PCIT was justified in invoking its revisionary powers u/s 263, and the reassessment order dated 14.12.2018 passed by Assessing Officer u/s 147 read with Section 143(3) was rightly cancelled by ld. PCIT by invoking its revisionary powers u/s 263, and directions were rightly issued by ld. PCIT to AO to make fresh assessment denovo after investigating complete facts. We uphold the revisionary order passed by learned PCIT u/s 263 - assessee fails in this appeal which stand dismissed - ITA No.73/Lkw/2022 - - - Dated:- 21-10-2022 - Shri Vijay Pal Rao, Judicial Member And Shri Ramit Kochar, Accountant Member For the Appellant : None For the Respondent : Smt. Sheela Chopra, CIT, D.R. ORDER PER RAMIT KOCHAR, A.M. This appeal in I.T.A. No.73/Lkw/2022 for assessment year 2011-12 has arisen from the revisionary order dated 24/03/2021 (DIN order No. ITBA/Rev/F/REV5/2020-21/1031705283[1]) passed by learned Pr. Commissioner of Income-tax(Hereinafter called PCIT ) , Bareilly under section 263 of the Income-tax Act, 1961(hereinafter called the Act ). 2. The grounds of appeal raised by assessee in me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that many cash collection agents/salesmen are appointed and every day they are given the collection and payment/use of collected cash and in this processes 4 to 5 salesmen/agents make the payment to same creditor in a day at the different times but no payment has been made in excess of Rs.20,000/- as prescribed u/s 40A(3) of the I.T. Act, 1961. The assessee enclosed copy of payment vouchers and hence prayer were made by the assessee before AO that there was no violation of section 40A(3) of the Act, but the assessee admitted that due to circumstances beyond its control , a supplier may be made payment in aggregate in excess of Rs. 20000 in a day in cash which as per assessee could not be said to be in violation of Section 40A(3). The Assessing Officer, vide order dated 14/12/2018 passed u/s 143(3) read with section 147, accepted the contention of the assessee by holding as under: I have carefully considered the submission made by the assessee as discussed above and also gone through the vouchers provided in support of his contention. It has been noticed that the payment has actually been made to the same creditors in a day by the different persons. The name of the person by wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the entirety of fact, I am of the opinion that the issue is not properly examined by the AO. The case laws cited are distinguishable on fact and the order passed by the AO is erroneous in so far as prejudicial to the interest of revenue as per explanation 2(a) of section 263 of the Act. Hence, the assessment order passed by the AO is hereby cancelled to make fresh assessment denovo as per law after giving due and reasonable opportunity to the assessee and after investigating complete facts. The learned PCIT , thus,cancelled the reassessment order dated 14.12.2018 passed by AO u/s 143(3) read with Section 147 , and issued directions to the Assessing Officer to make fresh assessment de novo as per law after giving due and reasonable opportunity to the assessee and after investigating complete facts. 5. Now , when this appeal was fixed for hearing before the Division Bench on 19th October, 2022, none appeared on behalf of the assessee nor any application for adjournment has been filed on behalf of the assessee. It is observed that on earlier occasion also, when this appeal came up for hearing before Division Bench on 30th August, 2022, again none appeared on behalf of the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tual balance period of limitation remaining, with the effect from 01.03.2022 is greater than 90 days, that longer period shall apply. iv. It is further clarified that the periods from 15.03.2020 till 28.02.2022 shall also stand excluded in computing the periods prescribed under section 23[4] and 29A of the Arbitration and Conciliation Act, 1996 section 12A of the Commercial Courts Act, 2015 and provisos [b] and [c] of section 138 of the Negotiable Instruments Act, 1881 and other laws, which prescribe period[s] of limitation for instituting proceedings, outer limits [within which the court or tribunal can condone] and termination of proceedings. Thus , excluding this period wherein limitation was suspended by Hon ble Supreme Court, there was time available with the assessee to file the appeal within 60 days as provided under section 253(3) of the Act effective from 01.03.2022. The Hon ble Supreme Court has directed for making available period of 90 days effective from 01.03.2022, and the assessee will get extended period of 90 days as directed by Hon ble Supreme Court effective from 01.03.2022, to file this appeal. Thus, the assessee could have filed this appeal on or befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee is engaged in the manufacturing of bread and food items , and it was claimed that several sales persons/agents who made collection from different sources for supply of bread and then made payments in cash in a day to different creditors , and since cash payments were made by different sales persons/agents which in aggregate exceeding Rs.20,000/- in a day to the same party/creditor , but individual cash payment by one sale person/agent to a particular party/creditor in a day is less than Rs. 20000/- , and hence there is no infringement of Section 40A(3). It was claimed by assessee that since cash payment in a day is made by 4-5 different sale person/agent to same party/creditor, the aggregate of cash payment is more than Rs. 20,000/- in a day to one party/creditor , and hence there is no violation of section 40A(3) of the Act. The Assessing Officer simply accepted the contentions of the assessee wherein he observed that section 40A(3) prescribed payment exceeding Rs.20,000/- in a day by account payee cheque or account payee draft , while individual cash payment is below Rs. 20000 in a day per single voucher made to a particular creditor/party. The AO did not appreciated provis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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