The Mumbai Bench of Income Tax Appellate Tribunal ruled that Assessing Officer has correctly verified documents adduced by the assessee and set-asides revision proceedings u/s 263.
In the investigation process, PCIT sees that AO accepted the justification of the cash payments on the grounds of the taxpayer’s cash ledger, Mahesh Arvind Tilve, without building any link to a bank account treating the assessment order as wrong, as it is prejudicial to the interest of the revenue. As per the amendment proceedings beneath section 263 were incorporated with respect to the taxpayer. To the Tribunal the taxpayer has furnished the petition.
The counsel towards the petitioner mentioned that PCIT has executed the proceedings u/s 263 of the Act including the reasons that AO has not considered Rs. 3,75,000 furnished to the builder, M/s Neptune Venture and Development Pvt. The availability of the cash balance to AO has been validated that had opted for one of the choices, PCIT shall not choose a distinct view as comparing to AO and treating the assessment order as false and prejudicial to the interest of the revenue.
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Tribunal noticed that the assessment was reopened to validate the cash transactions and the cash payment mode through the petitioner to the builder as on money and the petitioner elaborated the source of the cash despite drawings being less but still petition has adequate cash to do money payment.
The Coram of Mr. S Rifaur Rahman, Accountant Member, and Mr. Pavan Kumar Gadale, Judicial Member directed that “there is no substance in the views expressed by PCIT and merely relying in explanation to section 263(1) for substituting his other possible view, will not render the assessment order erroneous. We do not find any reason to uphold the revision proceedings and accordingly 263 order is set aside”.
For the appellant and revenue, Mr. Vimal Punmiya and Mr. Surendra Kumar appeared.
