JASWINDER SINGH LEGAL HEIR OF AVTAR SINGH,PATIALA vs. PCIT( CENTRAL) LUDHIANA, LUDHIANA

The assessment was framed on the assessee pursuant to search action on son of the assessee Sh. Jaswinder Singh Rana wherein certain documents regarding purchase of agricultural land by the assessee were found. After considering assessee’s submissions, the returned income was accepted. The assessment order take note of the fact that the order was passed with the prior approval of Addl. CIT u/s 153D vide his letter No.2045 dated 23-02-2022.

Subsequently, upon perusal of case records, Ld. Pr. CIT show- caused the assessee u/s 263 on the ground that the assessee incurred cash expenditure of Rs.4,81,600/- which was stated to be sourced out of agricultural income. However, there was no withdrawal from the bank. Thus, the source of cash expenditure on behalf of Shri Jaswinder Singh Rana was not examined by Ld. AO. It was further observed that draft proposal for obtaining the requisite approval of Addl. CIT was submitted by DCIT, Central Circle, Patiala vide letter No. DCIT/CC/PTA/2-21-22/933 dated 21-02-2022. In the draft order, Ld. AO proposed addition of Rs.4,81,600/- u/s 69C for unexplained expenditure. The approval was granted vide letter No.2045 dated 23- 02-2022. However, while uploading the order on ITBA portal, Ld. AO uploaded the order in which returned income as filed by the assessee was accepted. The assessee opposed revision on the ground that the withdrawals were duly disclosed and Ld. AO accepted the same after verifying the same. Further, the requisite approval was granted by Addl. CIT u/s 153D only after due satisfaction. However, Ld. Pr. CIT observed that the assessee submitted cash books of Avtar Singh HUF and submitted that expenses were incurred by Avtar Singh HUF. However, no documentary evidence was furnished except for self made cash book of HUF entity. No enquiries were made by Ld. AO in that respect. Further, wrong order was uploaded on ITBA portal which did not have requisite approval u/s 153D. Accordingly, the assessment order was set aside for the limited purpose of examining the source of expenditure of Rs.4,81,600/-. Aggrieved, the assessee is in further appeal before us.