Sh. Suresh Chander Kapila, Palampur V. Pr. C.I.T.-1, Chandigarh

ITA 372/CHANDI/2022

AI Insights

The case involves Sh. Suresh Chander Kapila, the proprietor of Kapila Nursing Home, who appealed against the order of the Principal Commissioner of Income Tax-1, Chandigarh. The PCIT had invoked revisionary jurisdiction under section 263 of the Income Tax Act, 1961, challenging the assessment order passed by the Assessing Officer under section 143(3) of the Act. The PCIT's revision was primarily based on the high value of cash receipts during the demonetization period and inadequate inquiries by the Assessing Officer. The Tribunal examined the submissions and evidence presented, including detailed cash books and receipts, and concluded that the PCIT's order was not based on a thorough examination of the facts and was thus quashed.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127879 (ITAT-CHANDIGARH)
• Duration Of Justice: 11 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 21-03-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 20-04-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 69; 27; 263; 63; 201; 64; 73; 72; 22

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ, च डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, “B”,CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER & SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 372/ C H D / 2 0 2 2 नधा रण वष / Assessment Year : 2 0 1 7 - 1 8 Sh. Suresh Chander Kapila, Proprietor Kapila Nursing Home, Palampur Distt. Kangra, H.P. बनाम The Pr. CIT-1, Chandigarh थायी लेखा सं./PAN NO: AFDPK8252J अपीलाथ /Appellant यथ /Respondent नधा रती क ओर से/Assessee by : Shri Ashwani Kumar, CA राज व क ओर से/ Revenue by : Shri Sarabjeet Singh, CIT DR स ु नवाई क तार#ख/Date of Hearing : 22.03.2023 उदघोषणा क तार#ख/Date of Pronouncement : 23.03.2023 आदेश/Order P er S an jay G ar g, Ju d ic i a l Me mb er : T he p re s e n t ap pe a l ha s b e e n p r e f e r re d by t h e as s e s se e a g a i ns t t h e or d e r da te d 2 9 . 0 3. 20 2 2 o f t h e P r. Co mm i s s i on er o f I n co me T a x- 1, Ch a n d ig ar h [ he re i n a ft e r re fe r re d to a s ’ P C IT ’ ] ag ita t i n g t h e a ct i o n o f t he P CI T i n p a s s i ng t h e i mp ug ne d ord e r u/ s 2 63 o f th e I . T. A c t e xe rc i s i n g he r r ev i s i on j ur i s di c ti on . 2. T he A s s e s s ee ha s t a ke n fol l ow i n g gr o u nds o f ap pea l : - 1. T hat or d e r pas s e d u/ s 26 3 of t h e I n c o m e T ax A c t , 19 61 b y t he L e ar ne d Pr i n c i p a l C o m m i s s io ne r of In c o m e T ax - 1 , Ch a n di gar h is aga i ns t l a w an d f a ct s on t h e fi l e i n as m uc h s h e h as f a i l e d to s ho w as t o ho w t he as s es s m e nt or d e r pa s se d b y t h e L e ar n e d ITA No. 372-Chd-2022 Sh. Suresh Chander Kapila, Palampur 2 A s se s s i ng O ff i c e r i s er r on eo u s i n as m uc h as pr e j u di ci al t o t h e i nt er e s t o f r e v en u e. 2. T hat t he L e ar n e d P r . CI T , was not j us t i f i e d t o ho l d t ha t t h e n e c e s s ar y e n qu ir i e s wi t h r e s p ec t t o c as h de p os i t s , i nc r e a s e i n s a la r y, di s a l lo wa nc e u / s 36 ( 1) ( ( i i i ) , in ve s tm e nt s m ad e w i t h D L F f or o f f i c e s pa ce , e t c. wer e no t m ad e by t h e L e ar ne d As s e s s i ng O f fi c er wh il e fr a m i ng as s es s m e nt u/ s 14 3 (3 ) o f t he In c o m e T ax A ct , 1 9 6 1 w h er e as d e t ai l ed e n q ui r i e s we r e m ad e b y t he L e ar ne d A ss e s s i ng O f fi c er . 3. T hat t h e L e ar ne d Pr . CIT f ai le d t o ap pr e c i at e t he i m por t of d et ai l e d s ubm i s s io ns m ade b ef or e he r du r in g t h e c our s e o f pr o c e e di ng s u / s 2 6 3 wh i l e c om in g t o t h e c on c lu s io n t h a t th e or d e r pas s e d by t he L ea r n ed As s e s s i ng O f fi c er is e r rone ou s in as m uc h as pr e ju di ci al to th e i n t er e s t o f re ve nu e. 4. T hat t he L e ar n e d P r . CIT gr av e ly e r re d i n c om i ng t o t h e c on c l us i o n t h at t h e o r der p as s e d b y t he L e ar ne d A s se s s i ng O f f ic e r is e r r one ou s in as m uc h as pr e ju di ci al t o t h e i n t er e s t o f t he r e v en ue wi t h ou t s pe c i f y i n g a n y s uc h i t e m o n t h e b as i s of wh i c h i t c ou l d b e s o he ld . 3. T he b ri e f fa c t s o f th e c a se a r e t h a t t he A ss e s se e r u ns a N urs i ng H o me at P a l a m pu r . Th e A s se s s e e du r i n g t he y e a r de c la r e d a n i n c o m e o f Rs . 1, 59, 70 , 983 / -. Th e r e t ur n o f t he A s s e ss ee w a s sc ru t i n i z e d u/ s 14 3 ( 3) o f t h e In c o me T a x A ct , 19 61 ( he r ei na f t e r c a l l e d 't he A c t ' ) an d th e re tu r n o f i n c o me w a s a c c e pt e d by t h e A O vi d e o rde r dat e d 5. 1 2. 20 1 9 t o ve ri fy t he ‘h i g h va lu e r e c e ip t o f c as h s h ow n f ro m t hi r d p ar ti e s in re s p on s e t o da t a a nd p a y me nt o f t ax i n c as h du r i n g d e mo n i z a t i o n p e ri od du ri n g t he ye a r’. T he re a ft e r, th e L d. P CI T e xe r ci s e d h is r e vis i o n j u ri s d i c t i on u /s ITA No. 372-Chd-2022 Sh. Suresh Chander Kapila, Palampur 3 26 3 o f th e A c t. T h e L d. P CI T obs e rv e d t ha t t h e A O has n ot co n d uc t ed t he ne c es s a ry e n qu i re s t o a sc e r t a i n an d t o v e r i fy th e i s s ue fo r w h ic h t h e c as e w as s el e c t e d for s c r ut i n y. T he L d. P C IT is s u e d sh o w c au se n o t i c e t o t he A s s e s s ee , i n r es p o ns e t o w hi c h, t he A s s es s e e ma de t he f o ll ow i n g s ub m i s s io ns be f or e t he L d. P CIT . “ 4. T he wr i t t e n s ubm i s s io ns of t h e a s s es s e e a s s ubm i t t e d o n 10 . 0 3. 2 02 2 ar e r e p r od uc ed a s f o l l ows : - Wi t h r ef e r e n c e t o y our no ti c e f or i ni t ia t i n g pr oc eedi ngs un der s e c ti on 2 6 3 of t he I nc om e t ax A c t 1 96 1 t h e as s e s s ee s ubm i t s a s u nde r : - It is s ubm i t te d th at i n t h i s c as e t h e a ss e s s m en t was c om pl et e d u n de r s ec t io n 1 4 3(3 ) of t he I n c om e ta x A ct 19 61. D ur in g as s e s sm e nt pr o c e e d i n gs t he c om p l e t e b oo ks of ac co u n t s w er e p r oduc e d b e f or e t h e as s e s s i ng of f ic er wh i c h i nc lu de s c as h bo ok l e d g e r et c . , w h i c h d u l y e xa m i ne d b y th e a s s ess i ng of fi c er . Y o ur g o o d s el f has i ni ti at e d pr o ce e di n gs un d e r s ec t io n 2 6 3 o f th e I nc om e t ax o n c e r ta i n is s u e s wh ic h w e r e n ot l oo k e d i n t o b y t h e as s e s s in g o f f i c e r du r in g as s e s s m en t pr oc e e d i n gs . T he f ac tu al p os i ti on i s as und er : - 1) Ca sh d ep os i te d d u r i n g d em on iz a ti o n p er i od: - I t is s ub m i t t e d t h at dur i ng d em on i z at i o n p e r i od t h e a s s ess e e ha s de p os i t e d c as h i n b a nk r up e e s 65 , 00 , 0 00 / - a nd al s o pa i d th e in com e t a x i n c as h o n t w o d i ff e r en t d at es . I t is c la r i f i ed t h at th er e w as a de qu at e c as h i n h an d s i n th e bo oks of t h e as s e s s ee e v er y m o n th an d t he s am e wa s n o t i nc r e as e d dur i ng t he p er i od of de m o ni z at io n. I a m pr o d uc i n g he r e w i t h t h e c as h b o ok b e f or e y o ur go od f or y our p er us a l. D u r i ng as s e s s m e nt p ro c e e d i n gs a l l d e tai ls c al le d f or t he i n t he q ue s t i o n er s we r e up lo a d e d o n t h e po r ta l fr om ti m e t o t i m e . Ca s h i n ha n d i n t he b o o k s was al s o v er i f ie d by t he a ss e ss i ng of f ic e r . It i s fu r t h er s ub m i t t e d t ha t t h e de m o ni z at io n w as an no un c e d o n 8t h No v em be r 2 0 16, if s e e o ur c a sh b o ok, ITA No. 372-Chd-2022 Sh. Suresh Chander Kapila, Palampur 4 on f ir s t d a y o f J u ly 2 0 1 6 t he r e w as cas h i n ha nds in bo oks at r up e e s 3 4 , 5 1, 69 9 / - . L ik e wis e o n F ir s t A u gus t 20 16, t he c as h i n h a nd was r u pe e s 4 4 , 0 2, 18 3 / - an d in Se p t e m b er 201 6 t h e c as h i n h an d w as r u pe es 51, 6 3 , 257/ - , t he r e fo r e t h e c a sh i n ha nd s av ai l a bl e wi t h t h e a sse s s e e c an no t b e d ou b t e d . It was r ec e iv e d f r om t he r e gu l ar r e ce i pt s li k e O P D , U l t r as ou n d, In do o r r e c ei pt s an d L a b e tc . I w ou ld a ls o l i ke t o br i ng i n y o u r ki n d n ot ic e t ha t du r in g t hi s p er i od t he n u r s in g h om es we r e a ut hor i z ed b y t he g o v e r nm e nt o f I ndi a to a c c e p t ol d c ur r e nc y. T her e is al s o no di s pr o po r ti on a te i n r e c e ip ts of t he a ss e s s ee. T h e de t ai ls of da il y ca s h r ec ei p t s f r om 104- 20 1 6 t o 31 - 0 3 - 20 17 a r e a l s o a tt ac h e d h er e w i t h. T h er e i s a l s o n o v ar i a t i on i n t he d a il y r ec e ip ts , y ou r goo d s e l f c a n g o t hr ou g h t he l e d ge r acc ou nt s a t t a c he d. a) O PD r e ce i pt s R u pe es 1, 32, 73 , 64 5/ - b) In d oor r e ce i pt s R u pe es 92, 99 , 8 0 0/ - c ) L ab r e c ei pt s R u pe es 19, 72 , 1 8 0/ - d) J SS K Sc he m e i nc om e R u pe es 81, 83 0 / - e ) U l tr as o un d i n c om e R u pe es 94, 83 , 9 7 0/ - f ) R S BY s c he m e R u pe es 5, 09, 6 87/ - T he t ot al r ec ei pt s o f t he a s s es s e e i s r up ee s 3, 45, 22 , 1 1 2/ - . At t he s am e t i m e h e ha s de c l ar e d t he n et i n c om e a t r up ee s 1, 4 8, 33 , 7 9 4/ - i n t h e p r o f it and lo s s a c c o un t at t ac he d her e wi th . ( Se e p a g e 2 t o 4 0 ) If y o u g o t hr ou g h th e p as t h i st or y of t h e as s e ss e e h e is am on g t op t ax pay er s . It i s r eq ue st e d t h at n o i nt er f e r e nc e i n t h e as s e s sm en t or d e r i s c al l e d fo r o n t h e i s s ue o f c as h de po s it e d dur i ng d e m on i z at i o n. 2. S al ar y p ai d t o d oc t or s: - T he as s e s s ee h as p ai d s al ar y t o do c t or s a t r u pe es 1 , 12, 12 , 0 00 / -, t he as s e s s ee h as al s o i nc r e as e d th e s a la r y d ur i n g t h e y e a r. I wo ul d l ik e br i n g i n y o ur k i n d not i c e t ha t t hr e e d oc to r s ar e wor k i n g i n nu r si ng h ous e : - ITA No. 372-Chd-2022 Sh. Suresh Chander Kapila, Palampur 5 a) D r Sus hm a K a pi l a MB B S, re t i re d a s s e ni or m ed ic al o f f i c er f r o m s t at e s e r vi c e s . b) Sa m e e r K a pi l a MB BS MD R a di ol o gy c ) D r Son a li K ap il a MB BS MD G y ne col og y T he d o c t or s w or ki ng i n t he n u r si ng ho m e s a re t ho ug h f am i l y m e m b er s bu t h a vi ng p os t g r ad u a te d eg re e s , i f th e as s e s s ee has pa id t he m r upe es 1, 2 5, 0 00/ - p er m on t h or 3, 00 , 00 0/ - i n n e x t t hr e e m ont h ca nn ot b e s ai d un r eas o na bl e . Ev e n in c or p or at e h os pi t a l n o PG d o ctor ge t s a s al ar y l e s s t ha n r u pe es f o ur to f i v e l a k h. As r e gar d av oi di ng t ax es , it is c la ri f i ed t h at D r Su res h Ch a n de r K ap i l a hi m s e l f i s i n 3 0 % s la b o f i nc om e t a x a nd t he d oc to r s w or k i ng i n th e nu r si n g hom e a r e al s o i n s am e s l ab , t h e r ef or e is no r e ve nu e lo s s at al l . T he s a la r y ha s be e n p a i d t hr ou gh c h e qu e a nd ne c es s ar y T D S wa s al s o d ed u c t e d e v e r y m o nt h f r om t h e s a la r i e s . T hi s is s u e wa s a l s o c on f r on t e d by t h e as s e s si ng of f ic e r d ur i n g as s e s sm ent pr o ce e d in gs a nd ne c e s s ar y cl ar i fi c at io n w as gi v en . F or yo u r k i n d s at i s fa ct i o n I am en cl os i n g he r e w it h t h e le d ge r ac co un t s of a ll t he d oc t or s . It i s f ur t h e r s ubm i tt e d t h at t h er e is n o v ar i a t i on i n th e ge n e r al e x pe ns e s de b i t e d t o pr o f i t a n d l os s a cc ou n t e xc e p t i n t h e s a l a ry a cc ou nt . T h e as s e s s ee h as o n l y s ou rc e o f i n co m e f r o m hi s p r of es s i on , he h as n o o t her s ou rc e s of i n c om e , In r e sp ons e on E - f i li ng po rt al w e ha v e a l s o f i le d t h e s ou r ce " b us i n e s s r ec e i p ts " , ho w i t ap pea r s as g i f t l o a n s , we d o n o t k n o w . ( Se e p ag e 41 t o 45 ) 3. I n t er e s t fr e e ad v a n c es t o t wo p ar t i e s: - I t i s s ub m i t te d t ha t th e as s e ss e e a dv a n c e d r u p e e s 2 , 0 0, 000 /- t o G ara g A s so ci a t e s f or t he pu r ch a s e of X R a y m a chi ne o n Ma rc h 30 , 20 17, i t was n o t i nt er e s t f r e e l oa n o r a d va nc e, t h e m one y w as gi ve n i n th e e n d of t he y e ar an d t h e X Ray pl a n t w as i ns t al l ed i n t h e n ex t f i n a n c i al ye ar . L i ke w i s e r up ee s 4, 01, 3 2 5 /- w as gi ve n ad va n c e fo r t he co ns t r uct i o n t o H ans Ra j N a yy ar f or th e c ons t r u c ti o n of b ui l d i n g af t er ITA No. 372-Chd-2022 Sh. Suresh Chander Kapila, Palampur 6 de d uc t i n g t he T D S on 2 7 M ar c h 2 0 1 7. I t was a l s o no t a i nt er e s t f r e e l o an o r ad va nc e . L ed g er ac c ou nt of bot h th e pa r ti e s e nc l os ed , ( s ee pa g e 4 6 t o4 7)” 4. A pa rt fr o m t h a t , t h e A s s e s se e al s o fur n is h e d le ga l s ub m is s i ons re l yi ng o n t he c as e l a w s . T he L d. P CI T , ho w e v e r, o bs e rv e d t ha t t he A s s es s e e dur i n g t h e ye a r m ad e c a s h d epo s i t s o f Rs . 65 l a cs in h i s ba n k a cc ou n t. F ur th er , t he p a y me nt o f Rs . 20 la c s w a s made i n c a s h o n 22 . 1 1. 2 01 6 as a dv a nc e t a x. A not he r pa y m en t o f R s . 8, 1 0, 0 00/ - w a s ma d e i n ca s h on 2 3 . 11. 2 0 1 6 as ID S pa y me n t , th us , t ot a l i ng c a s h dep os i t o f R s . 93 , 1 0, 0 00 /- w a s ma de by t he A s s e ss ee i n h i s ba n k acc o un t d u ri ng de mo ne t i z a t io n p e ri od. T h e L d. P CI T o bs er v e d th at th ou g h th e A s s es s e e ha s s u b mi t t e d c as h bo o k d u ri ng t h e c o ur s e o f a s s es sme nt pro ce ed in gs t o e xp l a i n t ha t t he gi ve n c as h / de p os i ts w er e m ad e by hi m f ro m hi s c a s h- i n- h a nd , h ow e v e r , t he Ld. P CI T w a s not s at i s fi e d w it h t h e c as h b o ok a nd no t e d t h a t t h e c as h b o ok p er ta i n ed to onl y fo r t h e p er io d 2 9. 8 . 2 01 6 t o 1. 12 . 20 16 a n d t h a t t he A s s es s e e ha d s how n o p e n i n g ca s h i n ha nd t o t h e t un e o f R s. 5 , 2 2, 290 / - as on 2 9. 8. 20 16. S he obs e rv ed t ha t t he op e n i n g c as h i n h a n d w a s no t v e r i f ia bl e fr o m t he de t a i l s s ub mi t t e d b y t h e A s s es s e e . 5. H ow ev er , t he L d . c ou n s el for t he as s e s s ee ha s b rou ght ou r a tt e n t i o n t o t he s u b se qu en t p ar t o f t h e or de r o f t he L d . P CIT t o s ub mi t t ha t t h e A s s e s se e , n ot o n l y b e f or e t h e A O bu t a l s o b e fo r e t he L d. P C I T, ha d fu r ni s he d a c op y o f t h e l e d g er a c co unt i n r es p ec t o f th e O P D re c ei pt s , l a bo ra t o r y r ec ei p t s , i n do o r re c ei pt s a n d ul t ra s oun d r e c e i p t s . ITA No. 372-Chd-2022 Sh. Suresh Chander Kapila, Palampur 7 T he A s s e s s ee , th us , has s h o w n th e t ot a l r e c e i p t s d ur i n g t h e y e a r . T h e Ld . P CIT h as a l s o t a bu la t ed s u c h r e c e i p ts in a C h ar t i n t he i mp ug ne d o rd e r . N ot hi ng h a s be en m e nt i on e d i n t he or d er o f L d. P C IT t ha t t h e s ai d re c ei pt s w e re no n - v e ri fi a bl e. 6. T he L d. D R , on t h e ot h er h an d ha s s up por te d t h e o r d e r o f th e L d . P CIT . 7. We ha v e h e a r d t he ri va l s ub m is s i on s a nd ha v e a lso pe r us e d t h e m at er ia l o n r ec or d. T he A s s es s e e ha d du l y s how n v a ri o us re c e i p t s a l o ng w i th na t u re o f r ec e i pt s e t c. an d e a c h a n d e v e r y e ntr y o f t he s a i d re c e ip t ha d be e n fu rn is h e d be fo r e t h e A O as w e ll as be fo re t he P C I T. H ow ev er , t he L d. P CI T f urt he r a na l y z i n g t he s a id d at a obs e r ve d t h a t ce rt ai n re c ei pt s d u ri ng t he pe ri od fro m 1. 4. 2 01 1 t o 8. 1 1. 2 016, i. e d ur i n g t h e pr e - d e m on e t iz a ti on pe r i o d w e r e h i g h , w h er e a s , t he nu m be r o f e n t r i es du r i n g d e m on e t iz a t i o n p e r i o d w e re c o m pa ra t i ve ly l ess an d t h a t t he nu mb e r o f e n t r i es du r i n g th e po st - d e m o ni z at i o n pe riod w er e al s o c o mp a r a t i ve l y l es s . T h i s t y pe o f a na l ys i s , i n o ur vi ew , doe s n o t, i n a n y m a nn e r co nt r ov e r t or re bu t t he pl e a o f t he A s se s s e e r e g a r di ng t he c as h re c ei pt s a nd c as h -i n-h an d b e f or e t h e d e m one t i z a ti on pe ri od . I t i s no t t h e c as e o f t he R e ve nu e t ha t A ss e s s ee ha s d ep os i t e d s u ch re c e i pt s i n a n y ba n k ac c ou nt o r u s e d t he s a me fo r a ny o t h e r pu rp o se. T h e A s s es s e e fu r ni s h e d t h e c a s h bo o k a nd e ve n al s o ex p l ai ne d th at a s p e r t h e C i rc ul a r / N ot i fi ca t i o n i s s u e d b y t he G o v er n m e nt , t he N ur s i ng H o m e s w er e a ut ho ri s e d b y t he G o vt . o f I nd ia t o a c ce pt ol d cu r re nc y dur in g t he ITA No. 372-Chd-2022 Sh. Suresh Chander Kapila, Palampur 8 de mo ni z a t i o n pe ri o d . T h e A s s es s e e h a s gi v en t he d eta i l s o f th e re c e i pt s . T he L d. P CI T h a s no t co mp a r e d s u c h r ec e i pt s w i t h any p re v io us y e a r o r s ub se qu en t y e a r ’s r ec e ip t s . The L d. P CI T i n t hi s ca se h a s e xe r c i s e d h is re v i s i o na ry j u r is d i c ti on me r e l y o n t he b as i s o f t he as s u mpt i o n a n d pr es u m p t i on w i t h o u t poi nt i n g out as t o w ha t f au l t or de f ec t w a s t he re i n t he e xp l a n a t i o n g i v en b y t he A s s e s s ee vi s -à -v i s t he de t a i l s o f t he re c ei pt s s how n by t he A s s ess e e a nd th e c a s h b oo k ma i nt a i n e d b y th e A s s es s e e . T he A s s e s s ee d ur i n g t he ye a r h ad s h ow n t ota l p ro f es s i o n re c ei pt s o f ap pr ox . Rs . 3. 45 c r or es , out o f w hi c h, t h e A s s e ss e e h as re t ur n e d t he i n c o me o f R s . 1 . 59 c or e s , w hi ch se e ms t o be qu i t e re a s o na bl e. Th e L d . P CI T ha s fa i l e d t o po i n t o u t an y di s c re p a n c y i n t h e a cc ou n ts o f t h e A s s ess e e, b ut on l y s us p ec t ed th e g en u in en es s o f t he c as h bo ok b y bi fu r ca ti ng t he r e c e i pt s be tw e en t he di ff er e n t p e ri od o f ye a rs , w hi c h, i n o u r v i e w , ca nn o t b e he l d t o be j us t i f i e d fo r e xe rc i s e o f re v i s i o na ry ju r i sd i c t io n u/ s 2 63 o f t h e A c t a n d t her eb y s u bj e c t i n g t he A s s es s e e t o de no v o as s e ss me nt . 8. S o f ar as t h e ob s er v at i o n o f t h e L d . P C IT re g ar di n g c e r t a i n i nc re as e i n t he s a la ry o f tw o e m p l oy e es a n d h a v i n g ma d e ce rt ai n pa y m e n ts t o D L F fo r o ff ic e s pa c e at D e l h i, d is a l l o wa nc e us e u /s 36 ( 1) ( ( i i i ) o f t he A ct e t c. w e r e c on c e rne d, w e fi nd t h a t t h e c a s e o f t h e A s s es s e e w a s not s e le c t e d f o r s c r ut i n y o n t h es e i ssu es . T he o nl y i s s ue fo r w h i c h t h e ca s e o f t h e A s se s s e e w as s el e ct e d f or s cr u t in y u /s 14 3( 3) o f t he A c t w as in r e s pe c t o f ‘ t h e hi g h va lu e r e ce i pt o f c a s h s how n fr o m ITA No. 372-Chd-2022 Sh. Suresh Chander Kapila, Palampur 9 t hi rd p a r t i e s i n r e s pon se t o d a t a an d p a y me nt o f t ax in ca s h d u ri n g de mo ni z a t i o n p e r i od ’. H ow e ve r, L d. Cou n s el fo r t h e A ss e s s ee h as de mo ns t ra t e d t ha t e v en a l l t h e d e t a i l s w e re fu r ni s hed i n r es pe c t o f a b o v e i s s ue s a l s o be fo r e t he A O a n d t he A O ha s e xa m i ne d th e a bo ve i s s ue s. S i nc e t he c as e w a s not s el e c t e d for s c r ut i ny o n t h es e i s s ue s , t he re fo r e, i t c an no t b e s a i d t o b e a ny e r ror i n t he o r de r o f t he A O h as oc c u r re d, ev e n i f t he s a i d is s u es i n t h e op in io n o f t he L d. P CIT we r e not t h or o u gh l y e xa mi ne d as o f t he s e l e c t i o n o f t he c as e w a s fo r l im i t e d s c r ut i n y. T h e A O , o th er w i s e , w a s n ot s u p pos e d t o g o i nt o t hes e iss u es . In v ie w o f t hi s, i t c a n n ot be s a i d th at t h er e w a s a ny e r r or i n t h e or de r o f t he A O o n t h e s e i s s ue s, t he re fo r e, t he e xe rc i s e o f r e v is i on ar y j u ris d ic t i o n o f t h e L d. P CIT i n r e s pe c t o f t he a fo r e s ai d i s s ue s c a n no t be he ld t o b e j us t i f ie d. 9. In v i ew o f ou r a b ove di s c u s s io n, w e h o l d t ha t t he e x er c i s e o f re v i s i o n j u ri s d i c t i o n by t he Ld . P CI T i n th e a b ov e ca s e i s ba d in l a w a nd, t he re for e, t h e i mpu g ne d r e v i s i o n or d e r pa s s ed u/ s 2 63 o f t h e A c t by t h e Ld . P CI T i s her e b y q ua s he d. T he a pp e a l o f th e A s s ess e e s t a nds a ll o w e d. O rde r pr on ou nc e d o n 23. 0 3 . 2 0 23 Sd/- Sd/- (VIKRAM SINGH YADAV) (SANJAY GARG) Accountant Member Judicial Member Dated : 23. 03.2023 “आर.के .” ITA No. 372-Chd-2022 Sh. Suresh Chander Kapila, Palampur 10 आदेशक त*ल+पअ,े+षत/ Copy of the order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent 3. आयकरआय ु -त/ CIT 4. +वभागीय त न0ध, आयकरअपील#यआ0धकरण, च2डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड फाईल/ Guard File आदेशान ु सार/ By order, सहायकपंजीकार/ Assistant Registrar