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TMI Blog2023 (7) TMI 680X X X X Extracts X X X X X X X X Extracts X X X X ..... Explanation 2 of Section 263 the order passed by the A.O u/s. 143(3)/147 as observed by the Pr. CIT and, rightly so, is to be deemed to be erroneous in so far it is prejudicial to the interest of the revenue u/s. 263 of the Act. Our aforesaid conviction that failure of the A.O to carry out necessary verification while framing assessment and summarily accepting the explanation of the assessee would render the order passed by him amenable for revision u/s. 263 of the Act is supported by the Judgment of Deniel Merchants (P) Ltd. [ 2017 (12) TMI 476 - SUPREME COURT] We thus uphold the order passed u/s. 263 - Decided against assessee. - ITA No. 121/RPR/2022 - - - Dated:- 14-7-2023 - Shri Ravish Sood, Judicial Member And Shri Arun K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n his aforesaid contention, it was submitted by the Ld. AR that the assessee s earlier counsel, viz. Shri Vijay Jaiswal had suffered certain cardiac problem in February, 2021 onwards and had, thereafter, undergone a heart surgery in the month of July, 2022, due to which he could not properly attend to his professional work. Carrying his contention further, it was submitted by the Ld. AR that due to his failing health the assessee s earlier counsel had failed to advise the assessee to assail the order passed by the Pr. CIT u/s. 263 of the Act before the Tribunal. Our attention was drawn by the Ld. AR to the affidavit dated 20.06.2023 of the assessee wherein the facts leading to the aforesaid delay were deposed by him. On the basis of the afo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he had during the year carried out cash transactions of Rs. 13.20 lacs in a month in his bank account but had not filed his return of income for the said year, Page 4 of APB. Assessment was, thereafter, framed by the A.O vide his order passed u/s. 143(3)/147 dated 10.12.2018, wherein he had accepted the returned income of the assessee as such. 7. The Pr. CIT after culmination of the assessment proceedings, called for the assessment records of the assessee. On a perusal of the records, it was observed by the Pr. CIT that though the case of the assessee was reopened for the reason that he had during the year carried out cash transactions of Rs. 13.20 lacs (supra) in a month, but the A.O without carrying out the bare minimum verifications ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esaid factual position can safely be gathered from a perusal of the assessment order passed by the A.O u/s. 143(3)/147 of the Act dated 10.12.2018 a/w. reply filed by the assessee to the notice issued by the A.O. u/s. 142(1) of the Act dated 28.09.2018. Although it is the claim of the Ld. AR that the assessee in the course of assessment proceedings had stated before the A.O that he had during the year under consideration carried on the business of trading in forest produce and reference of the same can be traced in the assessment order, but we are afraid that the same cannot be stretched to infer that the assessee had furnished details as regards the source out of which cash deposits of Rs. 13.20 lacs were made by him in his bank account. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... basis for reopening of the assessee s case u/s. 147 of the Act, therefore, as per Explanation 2 of Section 263 of the Act the order passed by the A.O u/s. 143(3)/147 of the Act dated 10.12.2018, as observed by the Pr. CIT and, rightly so, is to be deemed to be erroneous in so far it is prejudicial to the interest of the revenue u/s. 263 of the Act. Our aforesaid conviction that failure of the A.O to carry out necessary verification while framing assessment and summarily accepting the explanation of the assessee would render the order passed by him amenable for revision u/s. 263 of the Act is supported by the Judgment of the Hon ble Supreme Court in the case of Deniel Merchants (P) Ltd. Vs. ITO, (2018) 95 taxmann.com 366 (SC). 13. We, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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