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TMI Blog2024 (9) TMI 480X X X X Extracts X X X X X X X X Extracts X X X X ..... r the shortfall in cash and jewellery in the return of income which has been accepted by AO. The said income was offered as business income since the assessee was engaged in contract work. During the course of assessment proceedings, AO issued notice u/s 142(1) along with a detailed questionnaire, inter-alia, to furnish explanation of cash seized and jewellery found during the course of search and seizure operations. The assessee furnished the requisite details and explanations vide reply dated 05-04-2021. There is no finding in the assessment order that the assessee failed to furnish any details as called for by Ld. AO. The Ld. AO also considered the sworn statement of the assessee. A finding was also rendered that some gold jewellery belo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ORDER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. By way of this appeal, the assessee assails invocation of revisionary jurisdiction u/s 263 by Ld. Pr. Commissioner of Income Tax Chennai-3 (Pr.CIT) vide impugned order dated 26-03-2024 in the matter of an assessment framed by Ld. AO u/s. 153C of the Act on 21-04-2021. The grounds taken by the assessee are as under: - 1. The order of the Ld. PCIT (Central) is contrary to law, facts and opposed to the principles of natural justice and fair procedure. 2. The Id. PCIT has failed to appreciate the fact that as per Explanation 2 (a) to Section 263, ...an order passed by the AO shall be deemed to be erroneous, if the order is passed without making inquiries or verification which should have been ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t arise, which is the main and sole reason for invoking the provision 263 of IT Act. 9. If two views are legally possible and the AO adopts one of the plausible views assessment order can't be said to be erroneous for the CIT to invoke jurisdiction u/s 263 of the IT Act. 2. The Ld. AR advanced arguments assailing the impugned revision of the order whereas Ld. CIT-DR has submitted that no enquiries were conducted by Ld. AO on the flagged issues while framing the assessment and therefore, revision was justified in law. Having heard rival submissions and upon perusal of case records, our adjudication would be as under. 3. From case records, it emerges that during this year, the assessee engaged in contract work of State Highways Department ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urce of jewellery. Further, requisite enquiries were made by Ld. AO, in this regard, during the course of assessment proceedings itself and the same was duly addressed by the assessee. However, Ld. Pr. CIT alleged that the copy of letter addressed to DDIT (inv.) was not available in the assessment record. The assessee nowhere admitted the source of business income. The Ld. AO did not conduct any enquiry to verify the source of cash jewellery. Finally Ld. AO was directed to cause necessary enquiries and invoke the provisions of Sec. 69A, if found applicable. Aggrieved, the assessee is in further appeal before us. Our findings and Adjudication 6. It is quite clear that cash was seized and certain jewellery was found from the assessee and a sw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Simply because, the revisionary authority holds a different view in the matter, the same could not be a good enough reason to invoke the powers u/s 263 which is as per settled legal position laid down by higher judicial forums. The case law of Hon ble High Court of Gujarat in Pr. CIT vs. Dharti Estate (TCA No.72 of 2024 dated 23-01-2024) is on identical set of facts and the same favors the case of the assessee. The case law of Jaipur Tribunal in Smt. Rekha Shekhawat vs. Pr. CIT (ITA No.7/JP/2021 dated 16-08-2022) is also on identical lines and supports the case of the assessee. Therefore, in our considered opinion, the revision of the order could not be upheld. By quashing the same, we allow the appeal of the assessee. 7. The appeal stand ..... X X X X Extracts X X X X X X X X Extracts X X X X
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