Case Law Details
Mahesh Prasad Singh Vs PCIT (ITAT Raipur)
ITAT Raipur held that revisionary proceedings cannot be termed as illegal or not maintainable when the assessee have not responded and remain non-compliant in explaining his case before the PCIT.
Facts- The case of the assessee was selected for scrutiny and assessment order u/s. 143(3)/147 of the I.T. Act was passed. Thereafter, Pr. CIT noticed that enquiries made about the source of cash deposits/transactions are not completed. On perusal of the assessment order, it was observed by the Pr. CIT that as stated by the assessee before the A.O., the cash deposits are out of the transactions made in the course of his coal purchase and sale and transporting business. On verification, the Pr. CIT observed that, there is nothing on record to confirm the such claim. Under these circumstances, the sum of Rs. 38,10,100/-needed to have been added as his income from undisclosed sources to compute the total income of the assessee for the above assessment year. Accordingly, the Pr. CIT had proposed to revise the order passed u/s.143(3)/147 of the Act by virtue of the power vested u/s.263 of the Act.
Being aggrieved, the present appeal is filed.
Conclusion- Held that order of the Pr. CIT wherein further opportunity was granted to the assessee, to appear before the Ld AO to submit necessary explanations/information for substantial justice, whereas the assessee have not responded and remain non-compliant in explaining his case before the Ld PCIT, cannot be termed as perverse or illegal or not maintainable, therefore, we do not find any infirmity in the view taken by the Pr. CIT, accordingly, hold that the same deserves to be upheld. We order accordingly.
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