TaxTMI 
TaxTMI 
2009 (2) TMI 245
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....rom the assessee and after hearing him passed an assessment order on 31st Dec., 2003 under s. 143(3) of the Act. He determined the total taxable income of the assessee at Rs. 7,79,650. In determining the income at this figure, the AO has made, an addition out of telephone expenses, out of car expenses and out of certain other expenses which turn to be of personal expenses. The learned CIT took cognizance under s. 263 of the Act and issued a show-cause notice on 14th March, 2006. In his opinion, assessee had constructed a house and AO has not examined the issue regarding the construction of the house. He further found from the record that a sum of Rs. 1 lac has been deposited in the capital account of the assessee. AO has accepted this amoun....
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....ssee also took us through occupation certificate issued by the MC, Faridabad and the completion certificate issued by the HUDA which are placed at page Nos. 114 and 115 of the paper book. On the strength of these documentary evidence, he contended that the AO has examined this issue in detail but somehow did not discuss this issue in the assessment order. According to the learned counsel, the learned CIT was of the opinion that the issue should have been referred to the Valuation Officer for determining the cost of construction. He pointed out that this is not the requirement of the law. The learned CIT in the impugned order has not highlighted the circumstances which could have persuaded the AO to refer the matter for valuation. If there i....
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....) 203 ITR 108 (Bom) 4. On the other hand, learned Departmental Representative relied upon the order of CIT and contended that assessment order is running into two pages only. AO has not investigated the issue properly and, therefore, learned CIT has every power to revise such type of orders. He relied upon the decision in the case of Jagdish Kumar Gulati vs. CIT (2004) 191 CTR (All) 25 : (2004) 269 ITR 71 (All). 5. We have duly considered the rival contentions and gone through the record carefully. The Tribunal in the case of Mrs. Khatiza S. Oomerbhoy vs. ITO (2006) 101 TTJ (Mumbai) 1095 analyzed in detail various authoritative pronouncements including the decision of Hon'ble Supreme Court in the case of Malabar Industrial Co. Ltd. vs....
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....3 is not permitted to substitute his estimate of income in place of the income estimated by the AO. (vii) The AO exercises quasi-judicial power vested in his and if he exercise such power in accordance with law and arrives at a conclusion, such conclusion cannot be termed to be erroneous simply because the CIT does not feel satisfied with the conclusion. (viii) The CIT, before exercising his jurisdiction under s. 263 must have material on record to arrive at a satisfaction. (ix) If the AO has made enquiries during the course of assessment proceedings on the relevant issues and the assessee has given detailed explanation by a letter in writing and the AO allows the claim on being satisfied with the explanation of the assessee, the d....