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TMI Blog2023 (11) TMI 228X X X X Extracts X X X X X X X X Extracts X X X X ..... fact that the assessment was framed by the Assessing Officer after due application of mind and verification of issue referred to in the notice under section 148 of the Act to his satisfaction in accordance with law. Therefore, finding of the Worthy Pr. Commissioner of Income Tax-1, Amritsar that assessment framed without making adequate inquiries is against the facts of the case. 3. That the learned Pr. Commissioner of Income Tax-1, Amritsar has erred in assuming the jurisdiction under section 263 of the Income Tax Act by invoking the explanation 2 of section 263 of the Act without pointing out in which manner the enquiries for verification should have been made. 4. That the appellant craves to add, amend or alter any ground of appeal on or before the hearing." 3. The Ld. Principal Commissioner of Income Tax [In short "the PCIT"] issued show cause notice vide his office letter F. No. Pr. CIT- I/ASR/263/2020-21/1808 dated 28.02.2022 stating that the assessment u/s 143(3) r.w.s 147 of the I.T. Act was completed by the AO accepting returned income of Rs. 4,14,120/-; that the case was reopened on the reasons that case of Rs. 23,33,250/- was deposited in Punjab National Bank, M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee is in receipt of Rs. 10,80,200/- which has been duly declared in the Return of Income and have been accepted as well. The said receipts are forming part of the cash and bank books of the Appellant, thereafter, the total withdrawal of the Assessee form his bank account are of Rs. 21,07,880/-. 3. Further, the point of consideration is that the cash deposit of Rs. 23,33,250/- is scattered and distributed over the entire year and is not at all the case of one time deposit or bulk deposits. The said fact is evident form the bank statement forming part of the (Paper Book Part 2 at Page No. 15 to 20), it is clear that the quantum of deposit and withdrawals from the bank are very nominal and nothing suspicious. For your Honor's ready reference, the month-wise chart of cash Deposit and Withdrawals is as under: Month Cash Deposit Cash Withdrawal April-11 55900 896000 May-11 327400 305000 June-11 24000 65000 Jul-11 122300 64000 August-11 67650 95080 Sep-11 80500 46000 October-11 22000 95140 Nov-11 13500 13000 December-11 90000 158180 Jan-12 311000 119900 February-12 330000 41000 Mar-12 889000 209580 Total 2333250 2107880 Form the ab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccount of difference in opinion of Pr. CIT is invalid and unwarranted. 11. In the above view, we accept the grievance of the assessee as genuine. Accordingly, the revision proceedings u/s 263 of the Act are held to be bad in law and as such, the impugned order u/s 263 of the Act is quashed." * NARAIN SINGLA vs. PCIT in ITA no. 427/CHD/2015 "Section 69A, read with section 263, of the Income-tax Act, 1961 - Unexplained moneys (Jewellery) - Assessment year 2011-12 - Commissioner set aside assessment order under section 263 on ground that substantial jewellery was found during search at assessee's premises which was claimed to have been declared under VDIS 1997 by assessee's wife and Assessing Officer accepted that claim without enquiry and without verifying whether same jewellery continued to be held by wife of assessee even at time of search - Whether VDIS certificate issued by Commissioner was quite a valid document to prove possession of jewellery by assessee and Assessing Officer rightly accepted same as such - Held, yes - Whether there being nothing on record to show that assessee's wife had transferred jewellery declared under VDIS before date of search, Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the relevant material was not collected before framing assessment orders. Observation of the Commissioner that the income-tax officers did not make sufficient enquiries is totally subjective. It was not a case of lack of enquiry. The Commissioner judged the "sufficiency of enquiry" by subjective standards. It appears that according to the Commissioner, more enquiries should have been made. The observations of the Commissioner were general in nature, namely, there was lack of proper enquiries or investigation or cosmetic treatment was given by the ITOs". 5. Per contra, the Ld. DR although supported the impugned order, however, he failed to rebut the contention of the counsel. 6. We have heard the rival contentions, perused the material on record, impugned order, written submission and case law cited. Admittedly, the appellant assessee's case was reopened for the reasons that cash of Rs. 23,33,250/- was deposited in Punjab National Bank, Mansa being escaped assessment for the year under consideration. However, the Ld. PCIT did not appreciate the merits of the case and the contentions of the appellant that while examining the record, the AO did make enquires about the source of ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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