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TMI Blog2023 (12) TMI 698X X X X Extracts X X X X X X X X Extracts X X X X ..... has also filed necessary affidavit for condonation of delay of 199 days. Ld. CIT-DR has not raised any serious objection. Consequently, the delay in filing the appeal is condoned and the appeal is disposed off on merits. 3. On merits, it was the submission that the ld. AR that the original assessment order in the case of the assessee came to be completed u/s. 144 of the Act on 30.12.2019, wherein the AO had estimated the income of the assessee at 8% of the cash deposited in the assessee's bank account representing the sales. It was the submission that the assessee had filed first appeal before the ld. CIT(A) and in the meantime Vivad Se Vishwas Scheme, 2020 had been introduced and the assessee opted for the said scheme. It was the submission that Form No.5 under the Vivad Se Vishwas Scheme was issued on 29.11.2021. It was the submission that on 25.01.2022 a show cause notice u/s. 263 of the Act came to be issued on the assessee and on 18.03.2022 an order u/s. 263 of the Act came to be passed, wherein in para 5 of the order, the ld. Pr.CIT has given the following directions :- 5. I have carefully considered the submission vis-à-vis facts on record and proceed to determine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns, a Notice u/s 142(1) of the Act dtd. 17.01.2018 was issued and served upon the assessee, asking him to file his Return of Income for the A/Y 2017-18, But the assessee did not filed his Return of Income for the A/Y 2017-18. 2. As a measure of enquiry notice u/s. 133(6) of the Act was issued to the Oriental Bank of Commerce, Deogarh on doted 01.05.2019 and copy of bank account statements and information on cash deposits made using old demonetized 'currency was collected, As per the bank account statement the assessee has in fact received an aggregate of Rs. 1,78,71,965 in his bank account mentioned as above. Therefore, later a notice u/s. 142(1) of the Act as well as notice u/s 144(1) of the Act were issued to the assessee asking him to explain the source of cash deposits with documentary evidence. In response to the above, the assessee furnished the following documents on date 16.09.2019. 1. Statement of income for the Assessment Year 2017-18, 2. Current Account & CC Account statement from 01.04.2016 to 31.03.2017, 3. Statement of Affairs & capital Bank Account for the F Y 2015-16 and 2016-17. 4, Copy of Cash Book and CC Bank Book from 01.04,2016 to 31.03.2017. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rch 13,41,198 582727 740150 1114621 1,68,64,270 14809973 1,58,23,571 17141100 5. Based on the above observation the bank account statement and the replies on various issues by the assessee, and the information collected from third parties, the following issues have crept in for consideration. Having heard the case and the following issues are considered and decided under separate heads: 6. Addition on account of undisclosed income from business or profession. (i) The receipts from business sales are first deposited in the bank account and then remitted to the supplier. In other words, the receipts in the bank account are nothing but the business receipts of the assessee. (ii) The assessee has declared that the gross sales for the year was Rs. 1,58,23,571/-. The gross transfer out payments from the bank account of the assessee also shows that a sum of Rs. 1,68,64,270/- was transferred to different third parties accounts These payments are related to purchase payments made by the assessee during the F.Y. 2016-17. However, among these transfer payments some payment relating to automobile loans repayments are made. Aggregate of such payments is Rs. 2,88,000/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase value, must include profit to arrive at sales value. Applying reverse calculation method, the gross sales of the assessee for the F.Y. 2016-17 is determined as under:- Gross sales = Purchase X 100 92 = 1,64,90,342 X 100 92 = Rs. 1,79,24,285/- (vii) Taking gross sales for the F.Y. 2016-17 at Rs. 1,79,24,285/- the presumptive net profit can be estimated u/s 44AD of the Act at Rs. 14,33,943/- (being 8% of Rs. 1,79,24,285/-). As the assessee has not filed his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ld. Pr.CIT has categorically admitted that the actual cash deposit of Rs. 1,47,72,650/- and not Rs. 2,95,45,000/-. It was further submitted that the ld. Pr.CIT did not find anything specifically wrong with the findings of the ld. AO, therefore, restored the issue to the file of AO to have a second look at the issue and draw appropriate conclusions taking into account if any information is available, in the meantime that the assessee has any other source of income. It was the submission that this was not permissible under the provisions of Section 263 of the Act. 5. In reply, ld. CIT-DR placed reliance on the order of the ld. Pr.CIT passed u/s. 263 of the Act. 6. We have considered the rival submissions. A perusal of the order of the ld. Pr.CIT shows that the ld. Pr.CIT in para 6 of his order has categorically mentioned that he has restored the matter to the AO to have a second look at the issue and draw appropriate conclusions. The requirement under the provisions of Section 263 of the Act is "prejudicial and erroneous order". The ld. Pr.CIT has not shown how the original assessment order passed u/s. 144 of the Act was erroneous or prejudicial to the interest of revenue for th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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