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TMI Blog2023 (10) TMI 1233X X X X Extracts X X X X X X X X Extracts X X X X ..... ounden duty to take into account the perspective of the assessee on such fresh material and is required to pass a speaking order thereon. CIT thus is not expected to sit solely in the capacity of revisionary authority qua the new fact coming to the light post assessment/re-assessment order but is required to assume the task of AO in tandem and discharge quasi judicial functions in a reasonable manner. CIT, in the instant case, has failed to do so. There is not even an iota of any discussion as to how reply of the assessee is without any substance particularly when the assessee has furnished evidences to corroborate his version before theCIT. CIT has abruptly observed that the re-assessment order is erroneous in so far as it is prej ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... brief are that assessment under Section 143(3) r.w. Section 147 of the Act for AY 2009-10 was computed by the Assessing Officer determining the total income of the assessee at Rs. 3,73,530/- as against the returned income of Rs. 2,22,530/-. Thereafter, the Pr.CIT in exercise of revisionary power, issued notice under Section 263(1) of the Act dated 14.02.2019 requiring the assessee to show cause as to why the assessment so framed under Section 143(3) r.w. Section 147 should not be set aside or modified. It was alleged by the Pr.CIT that examination of records revealed that the re-assessment order so passed is erroneous in so far as prejudicial to the interest of the Revenue for the reasons that Assessing Officer has failed to conduct inquir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 009-10. In case you do not wish to avail the opportunity of being heard in person or through authorized representative in support of your claim, you may send your written reply so as to reach this office on or before the stipulated date, which will be duly considered before any such order is passed. In case of failure, the decision would be taken on merits. 3. In response, the assessee filed a reply and submitted that the show cause notice issued seeking to revise the re-assessment order is premised on fundamental error in appreciation of facts correctly. It was submitted before the Pr.CIT that while the show cause notice refers to alleged purchase of agricultural land in cash, the assessee has never purchased any land. The assessee ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agriculture land having joint ownership of other family members cannot be treated as sale of stock in trade. Further invoking of sec. 40A(3) is not valid at all as section 40(3) is applicable on cash purchase of business goods wherein in this case there is no purchase but agreement for sale of agriculture land. I, therefore would request your good self not to add the amount of Rs. 25.00 Lakhs to the taxable Income. 4. The Pr.CIT however held that the re-assessment order dated 28.12.2016 is erroneous in so far as prejudicial to the interest of the Revenue and consequently set aside the re-assessment order with a direction to make fresh assessment after making proper inquiries/investigations. 5. Aggrieved by the revisional order of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ivocal terms that assessee paid advance in cash of Rs. 25 lakhs for purchase of agricultural land during the Financial Year 2009-10. The ld. CIT-DR thus submitted that in the wake of such assertions, the Pr.CIT was justified in setting aside the erroneous re-assessment order framed without enquiry to the prejudice of the Revenue. 8. We have carefully considered the rival submissions. 9. The Pr.CIT in the present case has purported to act in exercise of power under Section 263 on the ground that re-assessment order accepting the cash advance in a commercial and business transaction is without proper inquiry having regard to the provisions of Section 40A(3) of the Act and therefore erroneous in so far as prejudicial to the interest of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ected to sit solely in the capacity of revisionary authority qua the new fact coming to the light post assessment/re-assessment order but is required to assume the task of Assessing Officer in tandem and discharge quasi judicial functions in a reasonable manner. 9.3 The Pr.CIT, in the instant case, has failed to do so. There is not even an iota of any discussion as to how reply of the assessee is without any substance particularly when the assessee has furnished evidences to corroborate his version before the Pr.CIT. 9.4 In paragraph 3 of the revisionary order, the Pr.CIT has abruptly observed that the re-assessment order is erroneous in so far as it is prejudicial to the interest of the Revenue in view of following observations but ..... X X X X Extracts X X X X X X X X Extracts X X X X
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