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TMI Blog2022 (11) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... hat in the absence of any specific enquiry made by the AO / recording reasons for accepting the assessee s submissions without any appropriate evidence shall be considered as erroneous or prejudicial to the interests of the Revenue - It is a settled principle that when the assessee has produced appropriate evidence before the AO and where the AO has not recorded the reasons for accepting the explanation of the assessee cannot render the order of the Ld. AO prejudicial to the interests of the Revenue. AO accepting the explanation of the assessee cannot be faulted merely because it could have been lawful to make more detailed inquiries or because he did not write specific reasons of accepting the explanation cannot be a reason to invoke the powers u/s. 263 - we hereby vacate the impugned revision order and restore the order of the Ld. AO. Appeal of the assessee is allowed. - I. T. A. No. 103/Viz/2022 - - - Dated:- 13-10-2022 - SHRI DUVVURU RL REDDY , HON BLE JUDICIAL MEMBER And SHRI S BALAKRISHNAN , HON BLE ACCOUNTANT MEMBER Appellant by : Sri GVN Hari , Advocate Respondent by : Sri MN Murthy Naik , CIT - DR ORDER PER S. BALAKRISHNAN , Accountant Member ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing jurisdiction U/s. 263 of the Act inasmuch as the assessment order U/s. 143(3) dated 28/11/2019 for the AY 2017-18 is neither erroneous nor prejudicial to the interests of Revenue. 3. Without prejudice to the above, the Ld. Pr. CIT is not justified in directing the assessing officer to reexamine the sources for cash deposits of Rs. 1,70,00,000 in the bank account during the previous year relevant to the impugned assessment year. 4. The Ld. Pr. CIT ought to have appreciated that the assessing officer had already made enquiries in respect of the above issues and as such it is not a case of lack of inquiry to enable the Ld. Pr CIT to invoke the provisions of section 263 of the Act. 5. Any other ground or grounds that may be urged at the time of hearing of the appeal. 4. Grounds No. 1 5 are general in nature and they need not be adjudicated. 5. Grounds No. 2, 3 4 relate to the assuming of jurisdiction U/s. 263 of the Act by the Ld. Pr. CIT considering the order of the Ld. AO as erroneous and prejudicial to the interests of the Revenue. The Ld. AR submitted that the assessee has furnished the details required by the Ld. AO with respect to cash deposits ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. Please provide details of cash deposits made in your bank account during the Financial Year 01/04/2016 to 31/3/2017 in the following format. Sl no Date of transaction Amount deposited Name of the Bank Account number 5. Please explain sources of deposits made in the bank accounts stated above with documentary evidence. 6. Please furnish books of account along with cash book for the year under consideration. 7. Any other information you may like to furnish in support of your claims made. M.V. Rao, Circle 2(1), Rajahmundry. 7. In response to the above notice, the Ld. AR has submitted all the required details along with supporting evidence of bank statements, Pattadar Pass Book for the agricultural income earned by the donors and given as gift to the assessee. The Ld. AR also submitted confirmation letters from the assessee s Mother-in law and from her mother s sister who has gifted aggregating Rs.15.25 lakhs to the assessee out of their income earned from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rved as follows: ..Of course, an Assessing Officer cannot remain passive on the facts which, in his fair opinion, need to be probed further, but then an Assessing Officer, unless he has specific reasons to do so after a look at the details, is not required to prove to the hilt everything coming to his notice in the course of the assessment proceedings. When the facts as emerging out of the scrutiny are apparently in order, and no further inquiry is warranted in his bonafide opinion, he need not conduct further inquiries just because it is lawful to make further inquiries in the matter. A degree of reasonable faith in the assessee and not doubting everything coming to the Assessing Officer's notice in the assessment proceedings cannot be said to be lacking bonafide, and as long as the path adopted by the Assessing Officer is taken bonafide and he has adopted a course permissible in law, he cannot be faulted- which is a sine qua non for invoking the powers under section 263. In the case strial Co Ltd v. CIT [(2000) 243 ITR 83 (SC)], Hon'ble Supreme Court has held that Every loss of revenue as a consequence of an order of the Assessing Officer cannot be treated as pre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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