Case Law Details
Satvir Kaur Vs PCIT (ITAT Amritsar)
ITAT Amritsar held that revisionary order under section 263 of the Income Tax Act unsustainable as AO accepted the deal of sale of agriculture land with a conscious and independent application of mind.
Facts- The case was reopened on the reasons that the assessee had deposited cash of Rs. 60,00,000 in her saving bank account maintained with the Oriental Bank of Commerce during the financial year 2010-11 and that no voluntary return has been filed for the year under consideration. Thus, it was incumbent on the Assessing Officer to examine and inquire into the facts in the light of submissions of the assessee so as to determine the correctness of the claim of the assessee which is the very purpose of assessment. The Pr.CIT noted that absence of enquiry by the AO that goes to the very root of the exercise to determine the correct income assessable to tax and this failure of the Assessing Officer renders the assessment as erroneous and prejudicial to the interest of the revenue.
Conclusion- In the present case, there is a direct nexus between the transaction of sale and the cash deposited in the bank account of the assessee as the transaction of sale of land is registered on 26.04.2010 and the cash was also deposited by the assessee on the same date. Further, the Ld. AO has accepted the deal of sale of agriculture land with a conscious and independent application of mind. Under the facts and circumstances, we hold that the application of provision of section 263 of the Act, on account of difference in opinion of Pr. CIT is invalid and unwarranted.
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