Case Law Details
SAP Medicals (P) Ltd Vs ITO (ITAT Hyderabad)
It is an admitted fact that the assessee has made cash deposit of Rs.39,74,500/- during the demonetization period which was accepted by him from various hospitals in demonetized currency in violation of the extant provisions regarding dealing in demonetized currency. However, the AO in the instant case has failed to investigate this aspect and passed the order u/s 143(3) accepting the income returned. In our opinion, the order passed by the Assessing Officer in the instant case without enquiring the huge cash deposit of Rs.39,74,500/- in demonetized currency in violation of the extant provisions regarding dealing in demonetized currency has rendered the order erroneous and prejudicial to the interest of the Revenue. Therefore, the learned PCIT, in our opinion, is fully justified in invoking the provisions of section 263 of the I.T. Act. The various decisions relied on by the learned Counsel for the assessee are distinguishable and not applicable to the facts of the present case since there is no application of mind at all by the Assessing Officer to this vital aspect of huge cash deposit during the demonetized period. Accordingly, the grounds raised by the assessee are dismissed.
FULL TEXT OF THE ORDER OF ITAT HYDERABAD
This appeal filed by the assessee is directed against the order dated 24/03/2022 of the learned Pr.CIT-1 Hyderabad, relating to A.Y.2017-18.
2. There is a delay of 277 days in filing of this appeal by the assessee for which the assessee has filed a condonation application along with an affidavit explaining the reasons for the delay. After considering the contents of the condonation petition filed along with the affidavit and after hearing the learned DR, the delay in filing of this appeal by the assessee is condoned and the appeal is admitted for adjudication.
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