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TMI Blog2023 (11) TMI 585X X X X Extracts X X X X X X X X Extracts X X X X ..... inquired in to the taxing of cash deposits with angadia amounting to Rs. 12180000/-, applied his mind and allowed the deduction. The order u/s. 143 (3) dated 09.12.2019 is neither erroneous in so far as prejudicial to interest of revenue. The order u/s. 143 (3) is prayed for restoration and quash the order u/s. 263. 2. The Ld. PCIT has erred in not accepting the plea of the appellant that the Ld. A.O. had applied his mind on the issue of information with regards to cash of Rs. 12180000/- which evident from the notice u/s. 142 (1) dated 31.08.19 at Point No. 7 of the Annexure. At Para-3 of the order the Hon. PCIT states that the A.O. has not properly examined the issues under consideration. Adequacy of inquiry cannot be the criteria to pas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opies of the vouchers, the Assessing Officer noticed that amounts in cash on various dates have been received by the assessee through National Shroff during the year. Shri Anirudh J. Solanki, partner of National Shroff stated before the Assessing Officer that the said amount of cash as reflected in the various vouchers on various dates during the impugned assessment year has been received by the assessee against the cash sales carried out by the assessee during the year. Accordingly, the Assessing Officer was of the view that the Department had concrete evidence to the effect that the assessee had carried cash transactions of Rs. 1,21,81,010/- and cash received amounting to Rs. 1,21,81,010/- through M/s National Shroff and which were nothin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ature of transactions and similarly accepted the commodity trade turnover when there was no material on record to make such assumptions. Accordingly, the PCIT was of the view that the Assessing Officer had incorrectly applying the provisions of law while completing the original assessment. In absence of satisfactory explanation, the PCIT held that the Assessing Officer ought to have considered the total amount as unexplained cash transactions and the aforesaid transactions amount should have been taxed u/s. 115BBEE of the Act. Accordingly, the Ld. PCIT set aside the assessment as erroneous and prejudicial to the interest of Revenue. 5. The assessee in appeal before us against the aforesaid order passed by ld. PCIT setting aside the origina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment proceedings, wherein notices u/s. 133(6) of the Act was issued to the partner of M/s. National Shroff, Rajkot. On the basis of disclosures made by the partner of National Shroff and the documents analysed by the Assessing Officer, the Assessing Officer was of the view that the aforesaid amount represented unaccounted cash sales of the assessee during the impugned year under consideration. Further, the Assessing Officer observed that the GP rate of assessee's business was declared @ 19.40% and accordingly, the Assessing Officer applied the aforesaid rate of 19.40% to the unaccounted sales amounting to Rs. 1,12,81,010/- and made addition of Rs. 23,63,115/-. In the 263 proceedings, the PCIT was of the view that the Assessing Officer e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubject to tax in the hands of the assessee and nor the entire receipts. Accordingly, the ld. Assessing Officer not erred in applying the GP rate of 19.40% after holding that the aforesaid sum represented unaccounted cash sales of assessee. Therefore, we are of the view that the Assessing Officer took one of plausible/possible view looking into the instant facts of the case and the ld. PCIT cannot take recourse to proceedings u/s. 263 of the Act only with a view to supplant/substitute his own view with that of the Assessing Officer on the ground that alternate view should have been taken by the Assessing Officer. Hon'ble Apex Court in the case of Malabar Industrial Co. Ltd. v. CIT (2000) 243 ITR 83 (SC), wherein it was held as under: " ..... X X X X Extracts X X X X X X X X Extracts X X X X
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