The Tax Publishers2021 TaxPub(DT) 5419 (Hyd-Trib)

INCOME TAX ACT, 1961

Section 263

Bank statements were already examined by AO after taking into consideration the copy of challans and AO was satisfied to the fact that assessee facilitated to the clients for rendering better services received amounts from clients to pay income-tax challans on behalf them and said amounts were not utilized for any other purpose. Therefore, it could not be said that assessee's intention of depositing cash into the bank was of a mala fide nature to convert black money into white during demonetization period. Once AO had taken a view on the issue, on which two views were possible, the view which was taken by AO, if Pr. CIT did not agree, it could not be treated as an erroneous order prejudicial to the interests of revenue.

Revision under section 263 - Erroneous and prejudicial order - AO had taken plausible view -

Pr. CIT treated order passed by AO as erroneous and prejudicial to the interest of revenue on the ground that AO failed to examine cash deposits in bank account of assessee being of mala fide nature to convert black money into white during demonetization period. Held: Bank statements were already examined by AO after taking into consideration the copy of challans and AO was satisfied to the fact that assessee facilitated to the clients for rendering better services received amounts from clients to pay income-tax challans on behalf them and said amounts were not utilized for any other purpose. Therefore, it could not be said that assessee's intention of cash depositing into the bank was of a mala fide nature to convert black money into white during demonetization period. Once AO had taken a view on the issue, on which two views were possible, the view which was taken by AO, if Pr. CIT did not agree, it could not be treated as an erroneous order prejudicial to the interests of revenue.

Relied:Malabar Industries Ltd. v. CIT 2000 (243) ITR 83 (SC) : 2000 TaxPub(DT) 1227 (SC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2017-18



IN THE ITAT, HYDERABAD

SATBEER SINGH GODARA, JM & LAXMI PRASAD SAHU, A.M.

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