IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH “B”, LUCKNOW BEFORE SHRI. SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND SHRI NIKHIL CHOUDHARY, ACCOUNTANT MEMBER ITA No.344/LKW/2024 Assessment Year: 2014-15 Shri Muhammad Zameer Qureshi v. The PCIT

180, Azam Nagar Bareilly Bareilly TAN/PAN:AACPZ6783H (Appellant) (Respondent)

Appellant by: Shri P. K. Kapoor, C.A.

Respondent by: Shri Neeraj Kumar, CIT(DR)

O R D E R

PER SUDHANSHU SRIVASTAVA, J.M.:

This appeal has been preferred by the assessee against order dated 22.03.2024, passed by the Ld. Principal Commissioner of Income Tax, Bareilly (PCIT) under section 263 of the Income Tax Act, 1961 (hereinafter called “the Act’) for Assessment Year 2012-13.

2.0 The brief facts of the case are that the assessee filed his return of income for the year under consideration under section 139(4) of the Act on 30.03.2015, declaring total income of Rs.2,19,810/-. The Income Tax Department was in possession of information that during the year under consideration, the assessee had received huge credits, totaling to Rs.61,63,31,042/-

in his Bank Accounts No. 019205004909, maintained with ICICI Bank, Bareilly, No. 205010200009737, maintained with Axis Bank Ltd. and No. 07485800000444, maintained with Yes Bank Limited. The Assessing Officer (AO) reopened the case of the assessee under section 147 of the Act after issuing notice under section 148 of the Act. In response to notice under section 148 of the Act, the assessee filed return of income, declaring total income of Rs.2,19,810/- i.e. the same income as returned under section 139(4) of the Act on 30.03.2015. The assessment in the case of the assessee was completed under section 147 read with section 144B of the of the Act, assessing the total income of the assessee at Rs.63,83,310/- after making an addition of Rs.61,63,310/- being Commission @ 1% on total credits of Rs.61,63,31,042/-.

2.1 Thereafter, the Ld. Principal Commissioner of Income Tax (PCIT) initiated revisionary proceedings under section 263 of the Act by issuing a Show Cause Notice (SCN) dated 25.01.2023. The Ld. PCIT noted that in paragraph 6 of the assessment order, the Assessing Officer (AO) stated that the replies of the assessee during the proceedings are not acceptable and that despite being provided with several opportunities, the assessee had failed to offer a valid explanation with respect to the credits. The Ld. PCIT further noted that the AO, inspite of such observations, had made an addition of only 1% of total receipts, without giving any basis of the same. The Ld. PCIT held that the total credits of Rs.61,63,31,042/- in assesse's bank account remained unexplained and were liable to be added under section 69 of the Act. It was further held by the Ld. PCIT that during the assessment proceedings, the AO had not examined/enquired into the details of facts of the case and, therefore, the order of the AO was prejudicial and erroneous to the interest of the Revenue. The Ld. PCIT, exercising his power under section 263 of the Act, set aside the assessment order and directed the AO to conduct the enquiry on the following points:

1. The AO during the course of proceedings must ensure that evidence regarding purchase of livestock is obtained from assessee.

2. The AO during the course of proceedings must ensure that evidence regarding payment made to the farmers for purchase of livestock is obtained and placed on record.

3. The bills and vouchers or any other evidence regarding transportation of livestock is to be brought on record.

4. The bills and vouchers or any other evidence regarding supply of livestock to slaughter house or any other entity is to be brought on record.

5. The AO shall conduct enquiry whether amount withdrawn from bank account was actually used for payment to farmers for purchase of livestock.

2.2 Aggrieved by the impugned order of the Ld. PCIT, the assessee is in appeal before us. The assessee has raised the following grounds of appeal:

1. The order passed under section 263 o