Hardevsingh P Chudasama Vs PCIT (ITAT Ahmedabad)
ITAT Ahmedabad held that PCIT has taken divergent view from that of AO without giving the basis for invoking of provisions of section 263 of the Income Tax Act. Accordingly, order passed by PCIT u/s. 263 not justifiable.
Facts- AO observed that the assessee deposited cash of Rs.47,69,500/- during the same period. Since the assessee has not responded to statutory notices AO proceeded on the basis section 144 of the Income tax Act. Subsequently, a show-cause notice dated 09.10.2019 was issued which was replied by the assessee dated 03.12.2019 and 24.10.2019. After taking cognizance of the same AO made addition of Rs.44,07,549/- u/s.69A of the Act being the unexplained money.
Subsequently, PCIT observed that since the assessment was made u/s.144 of the Act, total amount i.e Rs.6,78,95,152 credited by way of transfer/cash deposit in Bank account was required to be added to the total income considering it as unexplained cash added to the total income considering it as unexplained cash credit u/s.68 or u/s.69A of the Act. Thus, AO passed order which resulted in under assessment of income of Rs.6,34,87,602/- with consequent short levy of tax of Rs.7,79,80,234/- u/s.115BBE of the Act including interest u/s.234A and 234B. Therefore, PCIT issued notice u/s.263 of the Act dated 24.02.2022. PCIT set-aside the assessment order passed u/s.143(3) of the issues discussed in the order passed u/s.263 of the Act and directed the Assessing Officer to pass fresh assessment order. Being aggrieved, the present appeal is filed.
