Case Law Details
Sh. Jai Parkash Garg Vs PCIT (ITAT Delhi)
Facts-
AO noticed that assessee has deposited cash in the bank on the various dates. The assessee was called upon to explain the source of cash deposit with supporting evidence. In response thereto, the assessee explained that cash was deposited in the bank out of cash available with him out of withdrawal on earlier date, cash sales from the retail business & funds transferred from the OD a/c. Further AO noted that mostly cash was deposited in the bank in the round figure. That case was discussed with the counsel of the assessee who after discussion surrendered an amount of Rs.3,20,000/- subject to no penal action. Therefore, AO noted that to plug the possible leakage in revenue on a/c of cash deposited in the bank, an addition of Rs.3,20,000/- is hereby made subject to no penalty.
The PCIT proceeded to assume jurisdiction u/s 263 of the Act. PCIT observed that there was no enquiry/verification done on the issue of cash deposit of Rs. 43,19,000/- and AO simply accepted the version of the assessee. The PCIT directed that the assessment order is set aside and AO is directed to make the assessment afresh. Being aggrieved, assessee preferred appeal before ITAT.
Conclusion-
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
