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TMI Blog2019 (6) TMI 1694X X X X Extracts X X X X X X X X Extracts X X X X ..... Capital contribution by partners - CIT admitted that documents in support of capital contribution made by partners were asked by the Assessing Officer during the assessment proceedings and the same were also furnished by the assessee. However, in his opinion the same was not enough and the AO ought to have made further inquiries in respect of this issue. Thus, we find that it is not the case of lack of inquiry by the AO - CIT could not point out any error in the conclusion of the Assessing Officer which was arrived at by the AO. In our considered view, order u/s 263 could not have been validly passed in respect of this issue. Low withdrawal by partners - CIT observed that partners, namely, Shri. Bheem Sain, Shri. Bharat Bhushan and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s 263 of the Act and allow the appeal of the assessee. - ITA No. 211/Asr./2017 - - - Dated:- 14-6-2019 - Sh. N. S. Saini, Accountant Member And Sh. N. K. Choudhry, Judicial Member For the Assessee : Shri. P. N. Arora, Adv. For the Revenue : Smt. Parwinder Kaur, DR. ORDER PER N. S. SAINI, ACCOUNTANT MEMBER : This is an appeal filed by the assessee against the order of Pr. Commissioner of Income Tax, Bathinda dated 29/31.03.2017. 2. The assessee has raised following grounds of appeal: 1. The Ld. Principal Commissioner of Income Tax, Bathinda erred on facts and law in cancelling the order of the AO passed u/s 143(3) dated 05.11.2014, by invoking the provisions of section 263 of the I.T Act, 1961, without ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 determining income at Rs.52,77,604/-. 4. Thereafter, the Pr. Commissioner of Income Tax, Bathinda issued notice u/s 263 of the Act on 04.03.2015 which reads as under: 4. Perusal of the records reveals that the AO has made addition of Rs.1,30,000/- out of total expenditure of Rs.2.66 crores claimed by you under the head hiring charges of machinery and Rs.19.28 lakhs under the head fuel expenses since all such payments were stated to be made in cash supported by self made vouchers. Perusal of the machinery hiring account placed on record reveals that these payments have been made to many different persons on almost daily basis. For example, on 30.03.2012, such payments each less than Rs.20,000/- have been made to 50 different ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... these deposits. (ii) The household drawings of these partners namely Sh. Bheem Sain, Sh. Bharat Bhushan and Sh. Jiwan Kumar are Rs. 60,000/- only for the entire year. The AO has not examined the total household expenses vis-a-vis the total household drawings of the said partners. 7. There are substantial amounts of cash deposits in your various bank accounts. The statements of such bank accounts are placed on record. For example, an amount of cash of Rs. 7.20 lakh has been deposited in the month of March in the HDFC Bank, Sardulgarh Branch. There are similarly many cash deposits in this bank and your many other bank accounts. The AO has not examined the sources of the funds of such cash deposits. 8. In view of the above, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... artmental Representative fully justified the order of the Pr. Commissioner of Income Tax passed u/s 263 of the Act. 9. We have heard the rival submissions and perused the orders of the lower authorities and material available on record. In the instant case, the assessee filed its return of income disclosing income at Rs.49,47,604/-. Assessment was completed u/s 143(3) of the Act vide order dated 05.11.2014 determining total income at Rs.52,77,610/-. The impugned order was passed u/s 263 of the Act revising the said order of assessment. 10. The revision order has been passed by the Ld. Pr. Commissioner of Income Tax in respect of 4 issues. 11. The first issue relates to the expenses incurred under the head hiring charges of machiner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Jiwan Lal. The Ld. Pr. CIT admitted that documents in support of capital contribution made by partners were asked by the Assessing Officer during the assessment proceedings and the same were also furnished by the assessee. However, in his opinion the same was not enough and the Assessing Officer ought to have made further inquiries in respect of this issue. Thus, we find that it is not the case of lack of inquiry by the Assessing Officer. The Ld. Pr. CIT could not point out any error in the conclusion of the Assessing Officer which was arrived at by the Assessing Officer. In the above circumstances, in our considered view, order u/s 263 of the Act could not have been validly passed in respect of this issue. 15. The third issued dealt by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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