COMMISSIONER OF INCOME TAX Vs. DILIP KUMAR SWAMI

JUDGEMENT

(1.) This appeal is directed against order dated 19.5.17 of the Income Tax Appellate Tribunal (ITAT), Jodhpur Bench, Jodhpur, whereby the appeal preferred by the respondent-assessee against the order dated 28.3.16 passed by the Principal Commissioner of Income Tax (Appeals) [PCIT(A)], Bikaner under Section 263 of Income Tax Act, 1961 (for short "the Act") setting aside the order passed by the Assessing Officer (AO) and directing him to examine the case afresh after giving opportunity to the assessee, has been allowed.

(2.) The facts relevant are that during financial year relevant to Assessment Year(AY) 2009-10, the assessee made cash deposits of Rs.33,31,700/- in his Saving Bank account maintained with the State Bank of India (SBI) Branch-Suratgarh. The assessee was asked to explain the source of the said deposit but he did not file any reply. The assessee was served with notice dated 22.4.13, issued under Section148 of the Act, in response whereof the assessee vide letter dated 9.7.13 submitted that he had already filed his return of income for AY 2009-10 in the office of ITO, Suratgarh on 29.9.09 declaring income of Rs.1,91,680/-. Notice under Section 147/143(2) was issued and served on the assessee, in response thereto, Authorised Representative of the assessee appeared before the AO and supplied the required information. The assessee submitted that the amount in the said bank account was deposited out of the amount received from various purchasers against the sale of the goods i.e. tractor and accessories thereof. The copies of the bills issued on account of sale of tractors were also placed on record. The assessee stated that in the bank statement, the entries appearing are through transfer from another bank accounts of customers for purchase of tractors either by cheque or other mode. The AO found that the entries appearing in the bank statement are verifiable from the cash book and also the bills produced by the assessee. The deposits being reconciled, the AO arrived at the finding that no other addition is feasible. Accordingly, the income shown by the assessee at Rs.1,91,680/- was accepted vide Assessment Order dated 30.12.13.

(3.) The records of the assessment year in the question were called for and examined by the PCIT(A), who after examination of the record, being of the opinion that order dated 30.12.13 passed by the AO is prejudicial to the interest of Revenue issued a show cause notice under Section 263 of the Act to the assessee on 5.2.16, raising the issue regarding the cash deposits of Rs.33,31,700/- being not satisfactorily explained by the assessee and failure of AO to bring the same to tax. That apart, the issue with regard to withdrawal of meagre Rs.57,525/- by the assessee towards household expenses considering the same to be very low keeping in view the financial status of the assessee was also raised. After due consideration, the PCIT(A) vide order dated 28.3.16 set aside the Assessment Order dated 30.12.13 passed by theAO and restored the case to the AO for examination afresh in light of the observations made in the order after giving an opportunity of hearing to the assessee.