Case Law Details
K. Rajeswari Vs ACIT (ITAT Chennai)
ITAT Chennai held that as cash deposited by assessee received from petty shop owners on account of sale of its product during demonetization period was not examined by AO during assessment. Accordingly, PCIT rightly passed revision order u/s 263 directing AO to carry out necessary verification.
Facts- The only issue in this appeal of assessee is as regards to revision order passed by PCIT u/s.263 of the Act holding that the assessment order framed by the AO u/s.143(3) of the Act dated 18.09.2019 is erroneous and prejudicial to the interest of Revenue as the AO failed to examine the cash deposits made during demonetization to the tune of Rs.1,09,23,576/-.
Conclusion- We noted that the cash deposited by assessee in specified bank notes were received during demonetization period and nothing was examined by the AO while framing assessment. Now, the PCIT has only directed the AO to make necessary enquiry in regard to cash deposits and the allowability of SBN deposited during demonetization period. We are of the view that this is a case where no enquiry was carried out by the AO while framing assessment in regard to cash deposits made during demonetization period and hence, the PCIT has rightly held that the order is erroneous as well as prejudicial to the interest of Revenue. We uphold the order of PCIT and direct the AO to carry out necessary verification as directed.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
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