MOHAMMAD AMIN ,GUNA vs. PR CIT, GWALIOR

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ITA 83/AGR/2023Status: DisposedITAT Agra18 February 2025AY 2015-16Bench: SHRI SATBEER SINGH GODARA (Judicial Member), SHRI MANOJ KUMAR AGGARWAL (Accountant Member)3 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal found no merit in the Revenue's contentions, stating that the Assessing Officer had treated cash deposits as business turnover and conducted assessments accordingly. Therefore, the revision orders were deemed unjustified.

What were the facts?

The assessee's appeals arose from revision orders passed by the PCIT under section 263, deeming the Assessing Officer's assessments as erroneous and prejudicial to revenue. The PCIT argued the Assessing Officer failed to conduct proper inquiries into cash deposits.

What were the issues?

Whether the PCIT was justified in invoking revisionary powers under Section 263 due to alleged lack of inquiry by the Assessing Officer into cash deposits.

Which sections of the Income-tax Act were involved?

Section 263

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, AGRA BENCH, AGRA

Before: SHRI SATBEER SINGH GODARA & SHRI MANOJ KUMAR AGGARWAL

For Respondent: Dr. Arun Kumar Yadav, CIT(DR)
Hearing: 17.02.2025Pronounced: 17.02.2025

ORDER Per Satbeer Singh Godara, Judicial Member: These assessee’s twin appeals & 84/Agr/2023 for assessment years 2015-16 and 2017-18; arise against the Pr. Commissioner of Income Tax-1(in short, the “PCIT), Gwalior’s orders no. ITBA/Rev/M/Rev5/2022-23/1051738246(1) and ITBA/Rev/M/Rev5/2022- 23/1051735989(1) both dated 27.09.2024, involving proceedings under section 263 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’), respectively.

2.

Cases called twice. None appears at the assessee’s behest. We, accordingly, proceed ex parte against the assessee.

3.

It emerges during the course of hearing with the able assistance coming from the Revenue side represented by learned CIT(DR) that the PCIT, Gwalior herein has invoked his section 263 revision jurisdiction thereby holding the corresponding twin regular assessments framed by the Assessing Officer, both dated 31.03.2022 as erroneous ones causing prejudice to the interest of the revenue. Learned CIT(DR) seeks to buttress the point that given the fact that the Assessing Officer herein has not carried out any enquiry, i.e. for the purpose of examining the source of assessee’s cash deposits assessed @ 8%, the revision directions forming the subject matter of challenge, ought to be upheld.

4.

We find no merit in the Revenue’s contentions. We make it clear that the Assessing Officer’s identical twin assessments have not only held the assessee as engaged in live stock trading business but also treated his cash deposits as business turnover only, for the purpose of assessing the same at a uniform rate of 8% in both the assessment years, as the case may be. We thus, conclude that the same could not be termed as an instance of lack of enquiry as is projected at the Revenue’s behest to justify section 263 revision jurisdictions in light of Malabar Industrial Co. Ltd. Vs.

2 | P a g e CIT (2000) 243 ITR 83 (SC). We, therefore, reverse the impugned revision directions in very terms. Ordered accordingly.

4. These assessee’s twin appeals & 84/Agr/2023 are allowed. A copy of this common order be placed in the respective case files.

Order pronounced in the open court on 17.02.2025 .

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