Chandrakant Vallabhbhai Koladia Vs PCIT (ITAT Ahmedabad)
ITAT Ahmedabad held that revisionary proceedings under section 263 of the Income Tax Act not invocable as assessment made by AO after proper verification of evidences. Further, assessment order is neither erroneous nor prejudicial to interest of revenue.
Facts- Post scrutiny assessment, Pr. CIT initiated revisionary proceedings u/s. 263 of the Income Tax Act. The Pr. CIT held that under the provisions of section 69A of the Act, the initial onus by explaining source of money is cast upon the assessee. The assessee cannot shift its onus on the Assessing Officer without placing valid piece of evidence. Thus, in the present case, the assessee had unaccounted money for which the assessee had no explanation with corroborative evidences which were required to establish the source of such income. Hence, the provisions of section 69A of the Income Tax Act are applicable and also the provisions of section 115BBE of the Act are also applicable as on the amount unexplained money, the taxability is determined u/s. 115BBE. The assessee paid the taxes on the normal rate of taxes and without any proper verification, AO also taxed the income at normal rate of taxation without invoking the provisions of section 115BBE of the Act. Thus, AO without proper verification and inquiry and without application of his mind has taxed the additional income disclosed by the assessee of Rs. 55,14,166/- of which Rs. 7,60,000/- was incurred as personal expenditure at normal rate of taxes and without invoking the provisions of section 115BBE of the Act.
