Sh. RAJBIR SINGH, KAKAUT V. PR.CIT, ROHTAK

ITA 406/CHANDI/2022

AI Insights

The case involves an appeal by Shri Rajbir Singh against the order of the Pr.CIT, Rohtak, which set aside the assessment order for the assessment year 2011-12. The Pr.CIT had invoked section 263 of the Income Tax Act, claiming the original assessment was erroneous and prejudicial to the interests of the revenue. The tribunal examined the grounds of the appeal, which included the legality of the Pr.CIT's jurisdiction under section 263, the validity of the notice and order passed under this section, and the claim that the Pr.CIT's order was based on general observations rather than specific facts. After a detailed examination of the submissions and evidence, the tribunal concluded that the Pr.CIT's order was indeed erroneous and set aside the revisionary order.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 133743 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-11-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 06-09-2022
• Assessment Year: misc
• Appeal Filed On: 04-07-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Gift; Revision of order; Opportunity of being heard; Period of limitation; Time period of passing order; Set aside
• Section: 148; 6; 263; 63; 144; 143(3); 13

Judgement Text

आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरणआयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण,च瀃डीगढ़ 瀈यायपीठ च瀃डीगढ़ 瀈यायपीठच瀃डीगढ़ 瀈यायपीठ च瀃डीगढ़ 瀈यायपीठ , च瀃डीगढ़ च瀃डीगढ़च瀃डीगढ़ च瀃डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH ‘B’ CHANDIGARH BEFORE: SMT. DIVA SINGH, JUDICIAL MEMBER & SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER आयकर आयकरआयकर आयकर अपील अपीलअपील अपील सं संसं सं./ ITA No. 406/CHD/2022 Assessment Year. : 2011-12 Shri Rajbir Singh, VPO – Kakaut, Kaithal. बनाम VS The Pr.CIT, Kaithal. 瀡थायी लेखा सं./PAN /TAN No: CUBPS4877G अपीलाथ牸/Appellant 灹瀄यथ牸/Respondent िनधा榁琇रती क琉 ओर से/Assessee by : Shri Sanjay Kumar Singla, Advocate राज瀡व क琉 ओर से/ Revenue by : Shri Sarabjeet Singh, CIT-DR तारीख/Date of Hearing : 07.09.2022 उदघोषणा क琉 तारीख/Date of Pronouncement : 21.11.2022 आदेश आदेशआदेश आदेश/ORDER PER DIVA SINGH T h e p r e s e n t a p p e a l h a s b e e n f i l e d b y t h e a s s e s s e e a s s a i l i n g t h e c o r r e c t n e s s o f t h e o r d e r d a t e d 1 0 . 0 3 .2 0 2 1 o f P r . C I T , R o h t a k p e r t a i n i n g t o 2 0 1 1 - 1 2 a s s e s s m e n t y e ar o n t h e f o l l o w i n g g r o u n d s : 1. That the Ld. Commissioner of Income Tax has wrongly assumed jurisdiction under section 263 of the Act to set-aside the assessment order dated 10.03.2021 passed by the Assessing Officer in as much as the order is neither erroneous nor prejudicial to the interest of Revenue and as such the assumption of jurisdiction under section 263 of the Act is beyond his competence. 2. That the notice issued u/s 263 by the Principal Commissioner of Income Tax (hereinafter referred to as "Pr CIT") and the order passed u/s 263 is illegal, bad in law and against the facts of the case. 3. That the proceeding and the order passed by the Ld. Pr. CIT u/s 263 is perverse as it is based on general observation and not specific to the facts of the case. ITA 406 /CHD/2022 A.Y. 2011-12 Page 2 of 14 4. That the Ld. Pr. CIT has passed the order u/s 263 of the Act on surmises and conjectures and therefore is liable to be set aside. 5. That the appellant seeks leave to add, amend, alter, abandon or substitute any of the above grounds during the hearing of the appeal. 2 . A t t h e t i m e o f h e a r i n g , l d . C I T - D R s u b m i t t e d t h at i n t h e f i l i n g o f t h e p r e s e n t a p p e a l , t h e r e i s a d e l a y w h i ch h a s n o t b e e n p o i n t e d o u t b y t h e R e g i s t r y . 2 . 1 T h e l d . A R i n r e s p o n s e i n v i t e d a t t e n t i o n t o h i s l e t t e r d a t e d 0 2 . 0 9 . 2 0 2 2 a d d r e s s e d t o t h e R e g i s t r y . R e f e r ri n g t o t h e s a m e , i t w a s h i s s u b m i s s i o n t h a t t h e a s s e s s m e n t o r de r w a s n o t s e r v e d u p o n t h e a s s e s s e e t i l l 0 5 . 0 4 . 2 0 2 2 a n d i t c a m e t o t h e n o t i c e o f t h e a s s e s s e e o n l y o n 0 5 . 0 4 . 2 0 2 2 w h e n h e r e c e i v e d t h e c o n s e q u e n t i a l o r d e r p a s s e d b y N F A C u / s 1 4 4 p u r s u a n t t o t h e i m p u g n e d o r d e r . I t w a s o n l y a f t e r r e c e i v i n g n o t i c e f r o m t h e I T D e p a r t m e n t t h a t h e b e c a m e a w a r e o f t h e i m p u g n e d o r d e r p a s s e d b y l d . P C I T , R o h t a k u / s 2 6 3 . R e l y i n g u p o n t h e w r i t t e n s u b m i s s i o n s o f t h e a s s e s s e e , t h e ld . A R s u b m i t t e d t h a t c e r t i f i e d c o p y o f t h e a s s e s s m e n t o r de r w a s r e c e i v e d o n 2 6 . 0 4 . 2 0 2 2 a n d i m m e d i a t e l y t h e r e a f t e r th e a p p e a l w a s f i l e d o n 0 5 . 0 5 . 2 0 2 2 . I n t h e s a i d b a c k g ro u n d , i t h a s b e e n p l e a d e d o n t h e b a s i s o f t h e d e c i s i o n o f t he A p e x C o u r t i n M . A . N O . 2 1 o f 2 0 2 2 o f s u o - m o t o W r i t P e t i ti o n ( C ) N o . 3 o f 2 0 2 0 t h a t t h e r e i s n o d e l a y . R e l i a n c e w a s pl a c e d u p o n t h e f o l l o w i n g p r o n o u n c e m e n t m a d e i n t h e a f o r e sa i d j u d g e m e n t : ITA 406 /CHD/2022 A.Y. 2011-12 Page 3 of 14 “III. “In cases where the limitation would have expired during the period between 15.03.2020 till 28.02.2022, notwithstanding the actual balance period of limitation remaining, all persons shall have a limitation period of 90 days from 01.03.2022. In the event the actual balance period of limitation remaining, with effect from 01.03.2022 is greater than 90 days, that longer period shall apply.” 2 . 2 T h e l d . C I T - D R S h r i S a r a b j e e t S i n g h c o n s i d e r i n g t h e f a c t s h a s a g r e e d t h a t t h e d e l a y i s e x p l a i n e d a n d h e w o u l d h a v e n o o b j e c t i o n i n t h e l i g h t o f t h e f a c t s a s p l e ad e d i f t h e d e l a y i s c o n d o n e d . 2 . 3 W e h a v e h e a r d t h e r i v a l s u b m i s s i o n s a n d p e r u s e d t h e m a t e r i a l a v a i l a b l e o n r e c o r d i n c l u d i n g t h e l e g a l p os i t i o n a r g u e d . O n a c o n s i d e r a t i o n o f t h e s a m e , w e f i n d t ha t t h e d e l a y s t a n d s a d d r e s s e d . I t i s f u r t h e r s e e n t h a t e v en o t h e r w i s e n o a d v a n t a g e c a n b e s a i d t o h a v e b e e n d e ri v e d b y t h e a s s e s s e e b y f i l i n g t h e a p p e a l l a t e a n d n o d i s a dv a n t a g e h a s b e e n v i s i t e d u p o n t h e R e v e n u e i n c a s e t h e d e l a y i s c o n d o n e d a s n o v e s t e d r i g h t o f t h e R e v e n u e c a n b e sa i d t o b e d i s t u r b e d i f t h e d e l a y i s c o n d o n e d . O r d e r e d a c c o r di n g l y . 3 . T h e l d . A R i n v i t i n g a t t e n t i o n t o t h e i m p u g n e d o rd e r s u b m i t t e d t h a t t h e o r d e r w a s p a s s e d e x - p a r t e w i t h o ut h e a r i n g t h e a s s e s s e e . A t t e n t i o n w a s i n v i t e d t o t h e S h o w C a u s e N o t i c e e x t r a c t e d i n t h e i m p u g n e d o r d e r . F o r re a d y r e f e r e n c e , s a m e i s e x t r a c t e d h e r e u n d e r : "Facts of the case is that you had deposited cash of Rs. 15,05,000/- in saving bank account No. SB- 2892 maintained with Kaithal Central Co-op Bank Ltd. Kaithal during FY 2010-11 but did not file your ITR for the relevant AY. ITA 406 /CHD/2022 A.Y. 2011-12 Page 4 of 14 Therefore, notice u/s 148 was issued and further, assessment was completed u/s 143(3)/147 of the IT Act at returned income. You were required to explain the source of cash deposits ofRs. 15,05,000/- which was replied by you as under: 1. Agricultural land- Rs. 3,37,500/- dated 14/12/2009 2. Gift received from brother Vikas Kumar of Rs. 3,37,500/- 3. Ancestral house sold situated at Kakout of Rs. 5,50,000/- on 14/05/2010 4. Three buffalos sold of Rs. 1,48,500/- dated 10/05/2010 5. Withdrawals of Rs. 8,38,000/- from 31/05/2010 to 29/07/2010 and re- deposited in bank account of Rs. 1,20,000/- 2. From the perusal of record, following discrepancies were noticed: i) You had stated that you had deposited a sum of Rs. 3,37,500/- out of sale of agricultural land and Rs. 3,37,500/- out of gift received from the brother in the month of December, 2009. However, the cash has been deposited in May, 2010 after a gap of 5 months. The AO did not investigate this matter to ascertain the exact availability of cash before depositing because there was a sufficient gap of time. ii) Regarding the sale of buffalos, you had stated in your written reply dated 19.09.2018 that buffalos were sold on 10.05.2010 whereas as per affidavit of Sh. Satish Kumar, purchaser, the date of sale is mentioned as October, 2010. 1. The AO accepted the submission filed by you but there is no office note with the assessment order explaining the version of accepting the submission made by you. 2. You had stated that you had sold an ancestral house for sale consideration of Rs.5,50,000/- on 14.05.2010 situated at Vill.-Kakout. Affidavit of the purchaser Sh. Attar Singh was furnished by you during the course of assessment proceedings vide which Sh. Attar Singh deposed to have purchased the residential house from you in May 2010. On the basis of Sarpanch's report, affidavit of purchaser and your statement, AO has accepted your version as such. The AO had not made detailed enquiries in this regard, no verification of water and electricity bills and other relevant documents was made. 3) Further, no computation of capital gain has been furnished against the sale of above residential house. The AO did not raise any query regarding this capital gain”. 3 . 1 R e f e r r i n g t o t h e i m p u g n e d o r d e r , i t w a s h i s su b m i s s i o n t h a t t h e o r d e r d a t e d 3 0 . 1 0 . 2 0 1 8 p a s s e d b y t h e A O w as s e t a s i d e b y t h e l d . P C I T h o l d i n g t h a t i t h a s b e e n p a s se d i n ITA 406 /CHD/2022 A.Y. 2011-12 Page 5 of 14 u n d u e h a s t e . F o r r e a d y r e f e r e n c e , p a r a 5 o f t h e i mp u g n e d o r d e r i s e x t r a c t e d h e r e u n d e r : “ 5. Keeping in view of facts and circumstances of the case as discussed above, it is concluded that the assessee has nothing to say in his defense and it is observed that the AO has passed the order dated 30.10.2018 in undue haste and in a very casual manner without due diligence and without conducting any worthwhile enquiries. Therefore, it is very clear that assessment proceedings completed under section 143(3) /147 of the Act are erroneous in so far as prejudicial to the interest of the revenue in terms of provisions of section 263 of the Act including Explanation 2 inserted by the Finance Act, 2015 w.e.f. 01.06.2015. Accordingly, the assessment order passed by the AO on 30.10.2018 under section 143(3)/147 of the Act for the A.Y. 2011-12 is cancelled with the direction to pass an order afresh in accordance with law keeping in view the observations made in the above paras and after affording reasonable opportunity of being heard to the assessee.” 3 . 2 R e f e r r i n g t o t h e a s s e s s m e n t o r d e r d a t e d 3 0 . 10 . 2 0 1 8 s e t a s i d e b y l d . P C I T , i t w a s h i s s u b m i s s i o n t h a t th e o r d e r h a d b e e n p a s s e d a f t e r m a k i n g p r o p e r a n d f u l l e n q u i ri e s . A l l f a c t s w e r e e x p l a i n e d b e f o r e t h e s a i d a u t h o r i t y . 3 . 3 S u p p o r t i n g d o c u m e n t s p l a c e d b e f o r e t h e A O a t p a g e s 1 9 t o 2 9 w e r e r e l i e d u p o n . I t w a s h i g h l i g h t e d t h a t t h e A O h a d c o n s i d e r e d t h e c o p y o f t h e S a l e D e e d a s w e l l a s t h e A f f i d a v i t f i l e d b y M r . V i k a s K u m a r . A p a r t f r o m t h at , t h e A O a l s o r e c o r d e d h i s s t a t e m e n t . C o p y o f t h e s a m e i s a v a i l a b l e o n r e c o r d . 3 . 4 I t w a s a r g u e d t h a t a l l r e l e v a n t f a c t s w e r e t a k en i n t o c o n s i d e r a t i o n b y t h e A O b e f o r e t h e p a s s i n g o f t h e or d e r . 3 . 5 I n v i t i n g a t t e n t i o n t o P a p e r B o o k p a g e 3 0 a n d 3 1, i t w a s s u b m i t t e d , t h a t t h e s o u r c e s o f t h e d e p o s i t s e x p l a i ne d b y t h e ITA 406 /CHD/2022 A.Y. 2011-12 Page 6 of 14 a s s e s s e e f i l e d b e f o r e t h e A O h a v e b e e n i n c l u d e d . T he s e w e r e r e l i e d u p o n . 3 . 6 P a p e r B o o k p a g e 3 2 t o 3 5 w e r e r e f e r r e d t o i n or d e r t o d r a w a t t e n t i o n t o t h e c o p y o f r e p l y d a t e d 1 9 . 0 9 . 2 0 12 i n c l u d i n g c o p y o f s t a t e m e n t r e c o r d e d o f M r . S a t i s h K u m a r w h i c h h a d a l s o b e e n c o n s i d e r e d b y t h e A O . S h r i S a t is h K u m a r , i t w a s s u b m i t t e d , h a d p u r c h a s e d t h e b u f f a l o es a n d h e h a d a l s o e x p l a i n e d t h e s o u r c e o f h i s m o n e y s . S t at e m e n t o f t h i s p e r s o n h a d b e e n r e c o r d e d b y t h e A O . 3 . 7 . R e f e r r i n g t o p a g e s 3 6 t o 4 3 o f t h e P a p e r B o o k i t w a s s u b m i t t e d t h a t t h e A O h a d a l s o c o n s i d e r e d t h e I k r a rn a m a e n t e r e d i n t o b y t h e a s s e s s e e f o r s a l e o f a n c e s t r a l p r o p e r t y t o S h r i A t t a r S i n g h . T h e s e e v i d e n c e s s u p p o r t e d b y c o py o f S a l e A g r e e m e n t , P A N C a r d , A f f i d a v i t , c o p y o f s t a t e m e n t re c o r d e d b y t h e A O o f M r . A t t a r S i n g h a r e a l l s u p p o r t i n g e v id e n c e s a v a i l a b l e t o t h e l d . P C I T a n d w e r e r e l i e d u p o n h e r ei n a l s o . 3 . 8 R e f e r r i n g t o P a p e r B o o k p a g e 4 4 , a t t e n t i o n w as i n v i t e d t o t h e D e a t h C e r t i f i c a t e o f S h r i S a t P a r k a s h , f a t h er o f t h e a s s e s s e e . 3 . 9 I n t h e s a i d f a c t u a l b a c k g r o u n d , i t w a s s u b m i t te d t h a t a l l f a c t s s t o o d e n q u i r e d i n t o b y t h e A O i n d e p t h b ef o r e t h e p a s s i n g o f t h e o r d e r . R e l y i n g o n j u d g e m e n t s o f t h e I T A T C h a n d i g a r h i n I T A N o . 1 4 6 4 / C H D / 2 0 1 8 i n t h e c a s e o f M/ s ITA 406 /CHD/2022 A.Y. 2011-12 Page 7 of 14 V e n k a t e s h T e c h n o k r a f t P v t . L t d . V I T O ( d a t e d 1 9 . 0 4 .2 0 2 1 ) & I T A N o . 1 0 4 / C H D / 2 0 2 2 i n t h e c a s e o f S m t . S u n i t a G o y a l V s P r . C I T ( o r d e r d a t e d 0 6 . 0 7 . 2 0 2 2 ) i t w a s s u b m i t t e d th a t t h e i m p u g n e d o r d e r m a y b e q u a s h e d . 4 . T h e l d . C I T - D R M r . S a r a b j i t S i n g h r e l y i n g u p o n th e i m p u g n e d o r d e r s u b m i t t e d t h a t A O h a s a c c e p t e d t h e e x p l a n a t i o n o f t h e a s s e s s e e w i t h o u t c a r r y i n g o u t a ny e n q u i r i e s . E v e n i n t h e e v i d e n c e s f i l e d b e f o r e h i m , i t w a s s u b m i t t e d , t h e A O h a s n o t n o t i c e d t h e g a p o f f e w m on t h s i n t h e d e p o s i t o f t h e m o n e y . T h e A O h a s f a i l e d t o e n q ui r e i n t o i t . A p a r t f r o m t h a t , a s p e r t h e a s s e s s e e ' s e x p l a n a ti o n , t h e b u f f a l o e s w e r e s o l d o n 1 0 . 0 5 . 2 0 1 0 a n d a s p e r t h e a ff i d a v i t o f S h r i S a t i s h K u m a r , p u r c h a s e r o f t h e b u f f a l o e s , t h e d a t e i s m e n t i o n e d a s O c t o b e r 2 0 1 0 . A c c o r d i n g l y , i t w a s h i s s u b m i s s i o n t h a t w h e r e i s t h e p r o b l e m t o t h e a s s e s s ee a s a r e s u l t o f t h e s e t a s i d e . O n t h e i s s u e s a n i n - d e p t h e n q u i r y w a s w a r r a n t e d . I t w a s h i s s u b m i s s i o n t h a t t h e a s s es s e e c a n v e r y w e l l e x p l a i n t h e s e a g a i n b e f o r e t h e A O a s i t w a s o n l y a s e t a s i d e a n d n o t a n o r d e r w h e r e i s s u e s s t o o d c o n c lu d e d a g a i n s t t h e a s s e s s e e . I t w a s h i s s u b m i s s i o n t h a t t he a s s e s s e e w a s s t i l l f r e e t o a r g u e . 5 . T h e l d . A R i n r e p l y s u b m i t t e d t h a t c o n s i s t e n t l y t h e a s s e s s e e h a s b e e n a r g u i n g t h a t t h e a s s e s s e e i s a n ITA 406 /CHD/2022 A.Y. 2011-12 Page 8 of 14 a g r i c u l t u r i s t d r a w i n g i n c o m e f r o m s a l e o f m i l k f r o m b u f f a l o e s e t c . T h e a m o u n t s d e p o s i t e d h a v e b e e n e x p l a i n e d a t th e a s s e s s m e n t s t a g e a s c o m i n g f r o m a g i f t r e c e i v e d o f R s . 3 , 3 7 , 5 0 0 / - f r o m h i s b r o t h e r . T h e a v a i l a b i l i t y of f u n d s i n h i s h a n d s b y w a y o f a g r i c u l t u r a l l a n d s o l d a n d a f f id a v i t a n d s t a t e m e n t o f t h e b r o t h e r s t o o d r e c o r d e d b y t h e A O . S a l e o f a n c e s t r a l h o u s e s i t u a t e d a t K a k o u t e x p l a i n e d b y t h e p u r c h a s e r a n d t h e d o c u m e n t s i n s u p p o r t o f t h e s a l e r e m a i n e d u n r e b u t t e d o n r e c o r d . T h e s a l e o f b u f f a l oe s t o S h r i S a t i s h K u m a r h a s b e e n a f f i r m e d b y S h r i S a t i s h K u m a r. N o n e o f t h e s e e v i d e n c e s h a v e b e e n u p s e t b y t h e l d . P C I T . T h e e n q u i r y t o a s c e r t a i n w h e t h e r t h e b u f f a l o e s w e r e s o ld i n O c t o b e r , 2 0 1 0 o r o n 1 0 t h M a y , 2 0 1 0 c a n n o t b e t h e r e a s o n f o r 2 6 3 p r o c e e d i n g s . A c c o r d i n g l y , i t w a s h i s p r a y e r t ha t t h e o r d e r m a y b e q u a s h e d . 6 . W e h a v e h e a r d t h e r i v a l s u b m i s s i o n s a n d p e r u s e d t h e m a t e r i a l a v a i l a b l e o n r e c o r d . I t i s s e e n t h a t c o n si d e r i n g t h e e v i d e n c e s w h i c h h a v e b e e n s t a t e d a t l e n g t h i n t h e ea r l i e r p a r t o f t h i s o r d e r f o r t h e d e p o s i t o f R s . 1 5 , 0 5 , 0 0 0 /- . T h e A O r e c o r d i n g s t a t e m e n t s o f S h r i V i k a s K u m a r ( b r o t h e r of t h e a s s e s s e e ) w h o g i f t e d a m o u n t o f R s . 3 , 3 7 , 5 0 0 / - t o t h e a s s e s s e e a n d S h r i A t t a r S i n g h w h o h a s p a i d a n a m o u n t o f R s . 5 , 5 0 , 0 0 0 / - f o r p u r c h a s i n g a n c e s t r a l h o u s e o f t h e a s s e s s e e a n d h a s a l s o r e c o r d e d t h e s t a t e m e n t a n d l o o k e d i n t o t h e ITA 406 /CHD/2022 A.Y. 2011-12 Page 9 of 14 e v i d e n c e s o f t h e p a y m e n t o f m o n e y f r o m S h r i S a t i s h K u m a r w h o h a s p u r c h a s e d t h r e e b u f f a l o e s f o r R s . 1 , 4 8 , 5 0 0 / - a n d c o n s i d e r i n g t h e w i t h d r a w a l s o f R s . 8 , 3 8 , 0 0 0 / - f r o m 3 1 . 0 3 . 2 0 1 0 t o 2 9 . 0 7 . 2 0 1 0 w h e r e f r o m R s . 1 , 2 0 , 0 0 0 / - i s s t a t e d t o h a v e b e e n d e p o s i t e d , p a s s e d t h e f o l l o w i n g o r d e r : 6 . 1 I t i s s e e n t h a t t h e s a i d o r d e r i s f a u l t e d w i t h o n t h e g r o u n d t h a t R s . 3 , 3 7 , 5 0 0 / - h a s b e e n d e p o s i t e d a f t e r a g a p o f f e w m o n t h s a n d t h e d i s c r e p a n c y i n t h e d a t e o n w h i c h t h e b u f f a l o e s w e r e s o l d w h i c h a s p e r r e p l y o f t h e a s s e ss e e h a s b e e n n o t i c e d t o b e 1 0 . 0 5 . 2 0 1 0 a n d a s p e r t h e a f f i d av i t o f S h r i S a t i s h K u m a r i s a l l e g e d t o b e O c t o b e r , 2 0 1 0 . It i s a l s o s e e n t h a t t h e l d . P C I T h a s a d v e r s e l y n o t i c e d t h e f ac t t h a t t h e ITA 406 /CHD/2022 A.Y. 2011-12 Page 10 of 14 A O h a s n o t m a i n t a i n e d a n y O f f i c e N o t e . A d d r e s s i n g t h e l a c k o f O f f i c e N o t e f i r s t , w e f i n d t h a t t h e a b s e n c e o f an O f f i c e N o t e m a d e b y t h e A O b y i t s e l f c a n n o t b e s a i d t o b e v a l i d r e a s o n w a r r a n t i n g t h e e x e r c i s e o f t h e R e v i s i o n a r y po w e r s i n t h e f a c t s o f t h e p r e s e n t c a s e . T h e l d . P C I T f a i l s t o b r i n g o u t t h e f a c t w h a t h e w o u l d h a v e w a n t e d t o b e i n c l u d e d in t h e O f f i c e N o t e , t h e a b s e n c e o f w h i c h c a n l e a d t o t h e co n c l u s i o n t h a t t h e o r d e r i s e r r o n e o u s a n d p r e j u d i c i a l t o t h e i n t e r e s t s o f t h e R e v e n u e . A c c o r d i n g l y , w e f i n d t h a t n o t h i n g m u ch t u r n s o n t h i s a l l e g e d s h o r t c o m i n g n o t i c e d b y t h e l d . P C I T i n t h e f a c t s o f t h e p r e s e n t c a s e . W e f u r t h e r o n a c a r e f u l c o n s i d e r a t i o n o f f a c t s a s s e t o u t i n t h e i m p u g n e d or d e r a n d h o l d t h a t t h e d e l a y i n d e p o s i t i n g t h e m o n e y a d m i t t ed l y r e c e i v e d a s a g i f t f r o m h i s b r o t h e r b y t h e a s s e s s e e w h e r e t h e g i f t a n d s o u r c e o f t h e g i f t i s n o t d i s t u r b e d e v e n to d a y , t h e a s s e s s m e n t o r d e r c a n n o t b e c o n s i d e r e d t o b e e i t h e r e r r o n e o u s o r p r e j u d i c i a l t o t h e i n t e r e s t s o f t h e R ev e n u e . W e f u r t h e r h o l d t h a t e n q u i r i e s w h e t h e r t h e b u f f a l o e s we r e s o l d i n O c t o b e r , 2 0 1 0 o r o n 1 0 . 0 5 . 2 0 1 0 w h e r e S h r i S a t i s h K u m a r t h e p u r c h a s e r h a s a f f i r m e d t h e p u r c h a s e a n d p a y m e n t o n t h i s p o s s i b l e t y p o g r a p h i c a l e r r o r s , n o t h i n g m u c h t ur n s . W e h a v e s e e n t h a t h i s s o u r c e o f p a y m e n t s t a n d s e x a m i n ed b y t h e A O a n d i s n o t r e b u t t e d b y t h e l d . P C I T i n t h e f a c t s o f t h e p r e s e n t c a s e . T h e s e f a c t s a v a i l a b l e t o t h e R e v i s i o na r y ITA 406 /CHD/2022 A.Y. 2011-12 Page 11 of 14 A u t h o r i t y r e m a i n u n r e b u t t e d o n r e c o r d . T h e a s s e s s m en t o r d e r p a s s e d c a n n o t b e u p s e t w i t h o u t p o i n t i n g t o s uc h a n e r r o r w h i c h c a n b e t e r m e d t o b e p r e j u d i c i a l t o t h e i n t e r e s t s o f t h e R e v e n u e . C o n s i d e r i n g t h e d o u b t s r a i s e d b y t he l d . P C I T a n d c o n s i d e r i n g t h e e v i d e n c e s o n r e c o r d , w e f in d t h a t t h e i m p u g n e d o r d e r f a i l s t o p o i n t o u t t h e e r r o r w h ic h i s s e e n t o b e e r r o n e o u s a s w e l l a s p r e j u d i c i a l t o t h e i n t e re s t s o f t h e R e v e n u e . T h e m a n n e r i n w h i c h t h e a s s e s s m e n t o r d e r is w r i t t e n a n d t h e O f f i c e N o t e i s r e q u i r e d t o b e m a i n ta i n e d a r e p r o c e d u r e s w h i c h a r e i n t e r n a l t o t h e T a x A u t h o r i t i es w h e r e i n t h e a s s e s s e e h a s n o r o l e t o p l a y . T h u s , m e r e l y b e c au s e t h e A O h a s n o t m a i n t a i n e d a n y O f f i c e N o t e , t h e a s s e s s e e c a n n o t b e b u r d e n e d f o r t h e s a i d l a p s e . I t i s f o r t h e T a x A u t h o r i t i e s t o p u t t h e i r h o u s e i n o r d e r a n d e n s u r e t h a t a s p e r t h e s e t t l e d s t a n d a r d p r o c e d u r e s , o r d e r s a r e p a s s e d . F o r e x e r c i s i n g t h e R e v i s i o n a r y P o w e r s , t h e l d . P C I T n e ce s s a r i l y n e e d s t o m e e t t h e t w i n c o n d i t i o n s o f p o i n t i n g o u t th e e r r o r i n t h e o r d e r s o u g h t t o b e s e t a s i d e o r t h e p r e j u d i c e ca u s e d t o t h e R e v e n u e b y t h e s a i d a s s e s s m e n t o r d e r . I n t h e fa c t s o f t h e p r e s e n t c a s e , w e f i n d n o s u c h e f f o r t . O n f a c t s w e f i n d t h a t t h e i s s u e s h a v e b e e n e n q u i r e d i n t o a t l e n g t h by t h e A O a n d t h e o r d e r s c a n n o t b e s e t a s i d e o n m e r e w h i m s a n d f a n c i e s o f t h e R e v i s i o n a r y A u t h o r i t y . T h e R e vi s i o n a r y ITA 406 /CHD/2022 A.Y. 2011-12 Page 12 of 14 A u t h o r i t y i s m a n d a t e d t o s e t o u t t h e e r r o r a n d t h a t t o o s u c h a n e r r o r w h i c h i s p r e j u d i c i a l t o t h e i n t e r e s t s o f th e R e v e n u e a s i n t h e a b s e n c e o f t h e s a i d f a c t u a l f i n d i n g , t h e l e g a l m a n d a t e i s v e r y c l e a r a s t h e n t h e o r d e r i s a n a r b i tr a r y e x e r c i s e o f p o w e r a n d c a n n o t b e s u s t a i n e d . 7 . B e f o r e p a r t i n g , w e w o u l d l i k e t o a d d r e s s t h e a r gu m e n t a d v a n c e d o n b e h a l f o f t h e R e v e n u e n a m e l y t h a t i t i s m e r e s e t a s i d e o f t h e a s s e s s m e n t o r d e r a n d n o p r e j u d i c e c a n b e s a i d t o b e c a u s e d t o t h e a s s e s s e e a s h e i s s t i l l f re e t o a r g u e h i s c a s e b e f o r e t h e A O . W e f i n d t h a t s u c h a s u b m i ss i o n o n f a c t s c a n n o t b e a c c e p t e d . T h e T a x A u t h o r i t i e s c a n no t e x p e c t t h e c i t i z e n s / t a x p a y e r s t o s e t a s i d e t h e i r d a i l y e n ga g e m e n t w i t h l i f e a n d e v e r y t h i n g e l s e w h i c h i s i n v o l v e d t h er e i n a n d t o r u n a n d e n s u r e t h a t t h e y a r e p r e s e n t b e f o r e t h e a u th o r i t i e s t o d e f e n d a v a l i d l y p a s s e d a s s e s s m e n t o r d e r . O n c e a n a s s e s s m e n t o r d e r i s p a s s e d a f t e r d u e e n q u i r i e s , a ve s t e d r i g h t i s c r e a t e d i n f a v o u r o f t h e a s s e s s e e . T h e s ai d v e s t e d r i g h t c a n b e u p s e t b y t h e R e v i s i o n a r y A u t h o r i t y o n ly a f t e r f u l f i l l i n g t h e l e g a l m a n d a t e a n d f o l l o w i n g d u e p r o ce d u r e s o f l a w . T h e m a n d a t e i s v e r y c l e a r . I n o r d e r t o e x e r c is e t h e p o w e r t o s e t a s i d e t h e o r d e r , t h e R e v i s i o n a r y A u t h or i t y n e c e s s a r i l y o u g h t t o s h o w t h a t t h e o r d e r p a s s e d i s e r r o n e o u s a s w e l l a s p r e j u d i c i a l t o t h e i n t e r e s t s o f t h e R e v en u e . O n a c a r e f u l c o n s i d e r a t i o n o f t h e m a c r o a n d t h e m i c r o v ie w , w e ITA 406 /CHD/2022 A.Y. 2011-12 Page 13 of 14 b e l i e v e t h a t t h e t i m e h a s c o m e w h e n w e c a n n o t a v o i d a s e r i o u s i n t r o s p e c t i o n . W i t h u t m o s t h u m b l e n e s s a n d h u m i l i t y a t o u r c o m m a n d , w e s u g g e s t t h a t t h e T a x A u t h o r i t i e s s h o u l d s t o p f u n c t i o n i n g w i t h t h e c o l o n i a l m i n d s e t d i s p e n s in g j u s t i c e t o t h e c o l o n i e s . T h e e x e r c i s e o f p o w e r s s p e c i f i c a l ly t h e R e v i s i o n a r y P o w e r s a r e e x p e c t e d t o b e u s e d w i t h u t mo s t c a r e a n d a t t e n t i o n a s t h e v e s t e d r i g h t o f t h e c i t i z e n / t ax p a y e r c a n n o t b e p e r m i t t e d t o b e i m p a c t e d a d v e r s e l y b y a n o r d e r p a s s e d o n w h i m s . T h e a s s e s s e e i n t h e f a c t s o f t h e pr e s e n t c a s e i s s e e n t o b e a n a g r i c u l t u r i s t d r a w i n g i n c o m e f r o m s a l e o f m i l k o f b u f f a l o e s a t t h e r e l e v a n t p o i n t o f t i m e a n d l i k e a n y o t h e r c i t i z e n o f t h e c o u n t r y d e s e r v e s t o b e c o n s i d er e d f a i r l y . T h e a u t h o r i t i e s i n c l u d i n g t h e T a x A u t h o r i t i e s u n d e r t h e G o v e r n m e n t o f I n d i a e x i s t i n a r e p u b l i c a n d e m o c r a c y f u n c t i o n f o r t h e b e n e f i t o f t h e c i t i z e n s . T h e m i n d se t o f w o r k i n g u n d e r a c o l o n i a l R u l e a d m i n i s t e r i n g t h e c o lo n i e s i s n o l o n g e r a c c e p t a b l e . A n a s s e s s e e w h o i s i n p o s s e ss i o n o f a v a l i d l y p a s s e d a s s e s s m e n t o r d e r c a n n o t b e r e q u i r e d t o a g a i n f a c e t h e A O t o s u p p o r t t h e r e t u r n f i l e d . 8 . T h e i m p u g n e d o r d e r o n a c o n s i d e r a t i o n o f t h e p e cu l i a r f a c t s a n d c i r c u m s t a n c e s o f t h e p r e s e n t c a s e f o r t h e r e a s o n s h e r e i n a b o v e i s q u a s h e d a n d t h e a p p e a l o f t h e a s s e ss e e i s a l l o w e d . ITA 406 /CHD/2022 A.Y. 2011-12 Page 14 of 14 9 . I n t h e r e s u l t , t h e a p p e a l o f t h e a s s e s s e e i s a l lo w e d . O r d e r p r o n o u n c e d i n t h e O p e n C o u r t o n 2 1 s t N o v e m b e r , 2 0 2 2 . Sd/- Sd/- (VIKRAM SINGH YADAV) (DIVA SINGH) लेखा लेखालेखा लेखा सद瀡य सद瀡यसद瀡य सद瀡य/ Accountant Member 瀈याियक 瀈याियक瀈याियक 瀈याियक सद瀡य सद瀡यसद瀡य सद瀡य/ Judicial Member “Poonam” आदेश क琉 灹ितिलिप अ灡ेिषत/ Copy of the order forwarded to : 1. अपीलाथ牸/ The Appellant 2. 灹瀄यथ牸/ The Respondent 3. आयकर आयु猴/ CIT 4. आयकर आयु猴 (अपील)/ The CIT(A) 5. िवभागीय 灹ितिनिध, आयकर अपीलीय आिधकरण, च瀃डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड榁 फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar