ITAT Upholds PCIT's Revisionary Order Under Section 263 for Fresh Verification :

The assessee had not filed a return of income for Assessment Year 2011-12. Subsequently, the AO initiated reassessment proceedings under Section 147 of the Income Tax Act after noticing cash deposits of Rs. 13,13,400 in the assessee's bank account. In response to the notice issued under Section 148, the assessee filed his return of income on 20/10/2018, declaring total income of Rs. 3,99,300. Thereafter, the AO passed an assessment order dated 21/12/2018 under Sections 143(3) read with Section 147, determining the assessee's income at Rs. 23,02,630. The AO made an addition based on the peak credit balance of Rs. 27,01,930 appearing in the bank account, after reducing the income declared by the assessee.

However, based on an audit objection, the PCIT noticed that the total cash credits in the bank account amounted to Rs. 38,59,900, whereas the AO had considered only 70% of the amount, i.e., Rs. 27,01,930. Consequently, unexplained cash credits of Rs. 11,57,970 remained unexamined and untaxed. Since the assessee did not respond to the notices issued during the revisionary proceedings, the PCIT invoked powers under Section 263 and set aside the assessment order dated 21/12/2018 for fresh assessment after proper verification.

Before the Tribunal, the assessee's counsel sought permission to produce additional evidence to explain the cash deposits in the bank account. The Tribunal observed that the assessee had failed to respond to the notices issued by the PCIT during the revisionary proceedings under Section 263 of the Act. It further noted that the assessee was seeking to produce additional evidence before the Tribunal to explain the cash deposits, which had not been properly examined during the assessment proceedings.

Considering these facts, the Tribunal held that there was no error in the PCIT's action of invoking revisionary powers under Section 263 and setting aside the assessment for fresh verification. Accordingly, the Tribunal found no justification for interfering with the PCIT's order and dismissed the assessee's appeal.