The assessment proceedings were completed in the assessee’s case accepting the returned income. From the details of the assessment records, the Principal Commissioner noticed that the total sales during the period October 1, 2016 to November 8, 2016 came to Rs. 33,95,55,859 and total sales in the preceding six months had been shown at Rs. 29,25,42,304. He was of the view that the Assessing Officer failed to examine the issue of unexplained inflated sales post-demonetisation and held that the assessment order was erroneous and prejudicial to the interests of the Revenue and set it aside and restored the matter to the Assessing Officer

Held that the assessment order had been passed by the Assessing Officer. The issue had been thoroughly examined by the Assessing Officer during the course of assessment proceedings and the Principal Commissioner had not stated how the finding recorded by the Assessing Officer accepting the cash sales and resultant declaration of profits under the Scheme was erroneous in so far as prejudicial to the interests of the Revenue. The order of the Principal Commissioner was set aside and that of the Assessing Officer was sustained. (AY. 2017-18)