9911796707
TMI Blog2024 (7) TMI 576X X X X Extracts X X X X X X X X Extracts X X X X ..... nt order, Assessing Officer enquired this aspect and was satisfied with the explanation given by the assessee. In these circumstances, when the Assessing Officer has not made addition on the issue of reasons recorded, he is ousted of his jurisdiction to any other amount/addition in the assessment order. Assessing Officer did not make any addition for the reasons recorded at the time of issue of notice u/s 148 of the Act. This position is not disputed and disturbed by the PCIT in his order u/s 263 of the Act. Resultantly, Assessing Officer could not have made any addition on account of capital gain in the assessment proceedings u/s 147/148 of the Act. As such, the assessment order is not erroneous as held by the ld. PCIT. Hence, the ld. PCIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as erred in law and on facts in directing the assessing officer to enhance the income assessed by him vide order dated 29-12-2016 by denying the claims made by the assessee and further erred in directing to explore other action (penalty, prosecution etc.) against the assessee and that too by recording incorrect facts and findings and without observing the principles of natural justice and without considering the correct facts by assessee during the course of 263 proceedings and more particularly when all the details/information/evidences were available on the record at the time of assessment proceedings and assessee has rightly claimed the exemption u/s 54F and 54B of Income Tax Act. 4. That in any case and in any view of the matter, action ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... record, the high value AIR transaction entered into by the assessee in F.Y. 2008-09 remained unexplained. As such, source of the cash deposited in the Saving Bank account of the assessee remains unexplained. Therefore, on the basis of credible information in my possession, I have reasons to believe that the income chargeable to tax for the assessment year 2009-10 has escaped assessment within the meaning of section 147 of the LT. Act, 1961. 4. In the assessment order, Assessing Officer did not make any addition on the issue of cash deposit as discussed in the reasons recorded. Assessing Officer enquired about the cash deposit and he was satisfied with the explanation given by the assessee. Relevant portion of the assessment order read as un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd both the parties and perused the records. 7. Ld. counsel for the assessee submitted that the reasons recorded for reopening u/s 147 of the Act would show that the same were on the issue of cash deposit in the bank of Rs44,00,000/-. The source of such cash deposited in the bank was duly explained by the assessee and accepted by the AO in the assessment year under consideration. Ld. counsel for the assessee further submitted that thus it is an undisputed fact that the issue which prompted the AO to reopen the assessment was duly considered and the reply of the assessee was accepted and no addition was made on the issue for which reasons were recorded. These facts were not disturbed by the ld. PCIT in his impugned order u/s 263 of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of CIT vs. Software Consultants (supra), Hon ble Delhi High Court has dealt with the similar issue and has concluded as under :- For exercise of power under Section 263 of the Act, it is mandatory that the order passed by the Assessing Officer should be erroneous and prejudicial to the interest of the Revenue. In the present case, the Assessing Officer did not make any addition for the reasons recorded at the time of issue of notice under Section 148 of the Act. This position is not disputed and disturbed by the Commissioner of Income Tax in his order under Section 263 of the Act. Sequitur is that the Assessing Officer could not have made an addition on account of share application money in the assessment proceedings under Section 1471148. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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