Mrugesh Jitendrabhai Shah Vs PCIT (ITAT Ahmedabad)
ITAT Ahmedabad held that revisionary proceeding under section 263 of the Income Tax Act quashed since enquiry already conducted by AO during the course of assessment proceedings. Accordingly, appeal allowed.
Facts- The assessee is an individual and is engaged in the business in the name of M/s. M. J. Marketing and is engaged in the business of share trading. For the impugned assessment year, the assessee filed return of income declaring total income of Rs. 2,28,870/-. Assessment order u/s. 147 of the Act was passed with an addition of Rs. 4,79,700/- on account of unexplained investment.
On perusal of the case records, the PCIT observed that the case of the assessee was reopened on the basis of information of cash payment i.e. for payment of “on-money” of Rs. 20,82,500/- to Kushal Industrial Park by M/s. Kushal Infrastructure Pvt. Ltd. The PCIT was of the view that the AO had verified only the document value of investment, but he has failed to verify cash payment of Rs. 20,82,500/- appearing in the seized documents. Accordingly, the PCIT held that the order of the AO was erroneous and prejudicial to the interest of the Revenue, since the AO failed to carry out the necessary verification.
