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TMI Blog2023 (3) TMI 1096X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s 147 r/w 143(3) is sustained.Appeal of the assessee is allowed. - ITA NO. 467/Chd/ 2022 - - - Dated:- 7-3-2023 - SHRI. AAKASH DEEP JAIN , VP And SHRI. VIKRAM SINGH YADAV , AM For the Assessee : Shri Deepak Aggarwal , Advocate For the Revenue : Shri Sarabjeet Singh , CIT , DR ORDER PER VIKRAM SINGH YADAV , A. M. : This is an appeal filed by the assessee against the order of the Ld. PCIT, Patiala passed u/s 263 of the Act dt. 25/03/2022 pertaining to A.Y. 2017-18 wherein the assessee has taken the following ground of appeal: The Ld. CIT has erred in revising the assessment order dated 27.12.2019 on the ground that the assessing officer failed to conduct enquiries during the course of assessment proceedings whereas, as per the assessee the enquiry was properly conducted by the Assessing Officer and therefore the order u/s 263 passed by the CIT may kindly be quashed and set aside being not tenable. 2. Briefly the facts of the case are that the Assessing officer was in receipt of certain information that the assessee had spend Rs. 25 Lacs on the marriage of his daughter during the previous year 2016-17 and certain preliminary enquiries were ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ensation which was demanded as part of the petition before the Hon ble High Court. 5. The submissions so filed by the assessee were considered by the AO and thereafter after due examination thereof, the AO accepted the assessee s submission regarding Rs. 9,00,000/- being alimony amount which was merely a claim and not actually spent by the assessee as no addition was made by him. Further, out of Rs. 9,50,000/- spent by the assessee, the AO only accepted an amount of Rs. 6,30,000/- and the remaining amount of Rs. 3,20,000/- was held as unexplained expenditure. Further the amount of Rs. 6,50,000/- being value of the gold ornaments belonging to the assessee s late wife and gifted by the assessee to her daughter was also not found accepted and was held as unexplained. Therefore out of total Rs. 25,00,000/-which was the basis for reopening the assessment, the AO made an addition of Rs. 9,70,000/- and as against the returned income of Rs. 3,91,920/- and has determined the assessed income at Rs. 13,61,920/- vide the order dt. 27/12/2019 passed under section 148 r.w.s 143(3) of the Act. 6. Being aggrieved the assessee carried the matter in appeal before the Ld. CIT(A) and an appeal w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that he is a retired defense personnel and getting pension of Rs. 28,912/- per month and to manage the marriage ceremony of his daughter, he has withdrawn a sum of Rs. 2,00,000/- from his bank account. He has also stated to have the ornaments of his late wife valuing at Rs. 6,50,000/- which he failed to justify before the AO who made the addition of this amount and assessed his income at Rs. 13,61,920/-. It was held by the Ld. PCIT that the assessee has basically reiterated the facts which are on records and has not brought any new fact or evidence to justify the expenditure of Rs. 25,00,000/- spent on his daughter s marriage. Therefore, the sum of Rs. 11,38,080/- (Rs. 25,00,000 Rs. 13,61,920) remained unexplained and has not been properly verified by the AO. It was accordingly held by the Ld. PCIT that the assessment order was passed without making proper inquiry or verification and the order so passed by the AO was held as erroneous as the AO did not examine/verify the complete/details facts and the matter therefore is also prejudicial to the Revenue being the unexplained money which has escaped taxation and the assessment order so passed by the AO was set aside for passing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orting documentation and thereafter after due application of mind, he has only accepted a sum of Rs. 6,30,000/- out of Rs. 16,00,000/- and an addition of Rs 9,70,000/- has been made by him. It was accordingly submitted that the Ld. PCIT was not correct in stating that the figure of Rs. 11,38,080/- remained unexplained or unverified by the AO. 14. It was submitted that the Ld. PCIT has simply and mathematically looked at the figure of the assessed income and has compared it with figure of Rs. 25,00,000/- and has held that the remaining amount remained unexplained and unverified by the AO. It was submitted that the same clearly shows that there is lack of examination and due application of mind on part of the ld PCIT in invoking his jurisdiction under section 263 of the Act. It was accordingly submitted that both the invocation of jurisdiction and passing of the impugned order by the ld PCIT U/S 263 deserve to be set-aside. 15. Per contra, the Ld. DR has relied on the order of the Ld. PCIT. 16. We have heard the rival contentions and purused the material available on record. It is a case where the assessee, a retired defence person, has been asked to explain the source of ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of gold ornaments amounting to Rs 650,000/- and source of other expenditure amounting to Rs 950,000/- and after due examination of the submissions and documentation filed by the assessee, the AO has partially accepted the assessee s explanation to the extent of Rs 630,000/- and has made the addition of Rs 9,70,000/- in the hands of the assessee and has passed a speaking order. The fact that the explanation has been called for and not accepted on face value shows due application of mind on part of the Assessing officer and the ld PCIT in his order has not brought out what further enquiries or verification which ought to be done and has not been done by the Assessing officer and how the order so passed by the AO can be held as erroneous and prejudicial to the interest of the Revenue. 20. In light of aforesaid discussion and considering the entirety of facts and circumstances of the case, we are of the considered view that the order so passed by the AO cannot be held as erroneous in so far as prejudicial to the interest of the Revenue and the impugned order passed u/s 263 by the ld PCIT is set-aside and that of the AO s assessment order passed u/s 147 r/w 143(3) is sustained. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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