9911796707
TMI Blog2024 (3) TMI 1072X X X X Extracts X X X X X X X X Extracts X X X X ..... tions are duly disclosed . The copy of return of income shows that the assessee had filed presumptive income return. The aforesaid leaves no doubt in the mind of this Bench to conclude that the finding of the ld. PCIT that the AO had not been diligent enough and had not conducted worthwhile inquiries during the scrutiny assessment is erroneous. It appears that the ld. PCIT had questioned the prudence of the assessee for investing the sale proceeds of the business in security investment and transactions. We are of the considered view that such observations cannot be the foundation to hold that the order is erroneous so far as prejudicial to the interests of the Revenue. Rather, without pointing out anything specific during the revision proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing. The cash amounting to Rs. 17,60,000/- was deposited in your saving account with Central Bank of India and Axis Bank. You have submitted that these cash deposits were out of the sale proceeds amounting Rs. 24,96,580/- of cloth business. But, from the perusal of Bank statements, it is noticed that cash deposited in the different dates are being transferred to M/s Edelweiss Broking Ltd and M/s Sharekhan Ltd. In normal business practice, the sale proceeds of business are utilized to purchase of goods for subsequent business operation. Further, the AO has not examined the cash book for the relevant period. You have also transferred the money to M/s Elelweiss Broking Ltd. The statement of profit and loss account with M/s Elelweiss Broking Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clear that the assessment order is erroneous and prejudicial to the interest of revenue. The A.O. should conduct detailed enquiries on the above issues. The details of investment made relating to securities should be inquired into by examining documentary evidences. The income relating to securities should also be examined and inquiries should be made from M/s Edelweiss Broking Ltd and M/s Sharekhan Ltd. 5. Thus, holding that the assessment order was passed in a casual manner without due diligence and without conducting any worthwhile inquiries that the assessment order is erroneous so far as prejudicial to the interest of the Revenue and directed the AO to pass a fresh order in accordance with the law keeping in view the observations of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r under consideration. Assessment order dated 06-12-2018 u/s 143(3) of the Act for the A.Y. 16-17 is cancelled with the direction to pass an order afresh in accordance with law keeping in view the observations made in the order after affording reasonable opportunity of being heard to the assessee, which is bad in law and must be quashed. 5. That Pr. Commissioner of Income Tax has not considered the reply and cash book which was submitted along with reply before the Pr. CIT through portal. All the cash deposited transactions are duly accounted for in cash book. Without examination of cash book order passed by Ld. Pr. Commissioner of Income Tax, Rohtak u/s 263 of the Income Tax Act, 1961 is bad in law and must be quashed. The above actions be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eproduce those queries below:- 1. Please furnish copies of all the bank accounts for verification. Also furnish reconciliation in case of any difference in the balances at the close of the year w.r.t. the balance shown in the balance sheet. Please get the source of cash deposits verified with documentary evidence. 2. Please furnish cash flow statement for the year under consideration for verification. 3. Please furnish detailed trading account with the broker/ sub broker with whom you carried out transactions in shares during the year. 4. Please furnish complete details of shares purchased / sold during the year in the following format: Sr. No. Name of the share purchased Date of purchase No. of share purchased Purchase price per share Tota ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een given in form no. 10DB, which is delivery cash segment squared of transaction cash segment. 12. The copy of return of income available at pages 87 and 88 shows that the assessee had filed presumptive income return. The aforesaid leaves no doubt in the mind of this Bench to conclude that the finding of the ld. PCIT that the AO had not been diligent enough and had not conducted worthwhile inquiries during the scrutiny assessment is erroneous. It appears that the ld. PCIT had questioned the prudence of the assessee for investing the sale proceeds of the business in security investment and transactions. We are of the considered view that such observations cannot be the foundation to hold that the order is erroneous so far as prejudicial to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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