TaxTMI 
TaxTMI 
TaxTMI 
2009 (11) TMI 688
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....d without recording his own satisfaction or reasons was without jurisdiction and unsupportable in law and on facts and hence the impugned order under section 263, dated July 13, 2009 passed by the learned Commissioner of Income-tax-I, Kanpur is void ab initio and is liable to be quashed. 2. The notice under section 263 was issued by the learned Commissioner of Income-tax-I, Kanpur merely on suspicion without having cogent material or reason with him for initiating proceedings under section 263 of the Income-tax Act, 1961, hence the impugned order under appeal is illegal and unsustainable. 3. That the order under section 263 passed by the learned Commissioner of Income-tax-I, Kanpur setting aside the order of the learned Assessing Officer ....
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....he Income-tax Act, 1961. 7. That the learned Commissioner of Income-tax has failed to appreciate that while making the assessment, there was neither incorrect assumption of facts nor incorrect application of law by the Assessing Officer, only the order under section 143(3) was not written elaborately, hence the order is neither erroneous in the eyes of law, nor is prejudicial to the interests of the Revenue. 8. That the impugned order under section 263 of the Income-tax Act, 1961 is against the principles of natural justice and equity. 9. Your humble appellant craves leave to add, amend or withdraw any ground before or at the time of hearing." From the above grounds it would be clear that the only grievance of the assessee relates to th....
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....f the learned Commissioner of Income-tax has applied his mind and accordingly on the basis of proposal of the Joint Commissioner of Income-tax, Kanpur decided the issue. It was submitted that the Income-tax Officer (Technical) in the order-sheet entry dated June 5, 2009 has mentioned that "Joint Commissioner of Income-tax, Range-III, Kanpur has sent a proposal for initiation of proceedings under section 263 of the Act ...... Therefore, on receipt of proposal for initiation of proceedings under section 263 of the Act a show-cause notice is being issued to the assessee under section 263 of the Act." For the above said fact our attention was drawn towards pages 34 and 35 of the assessee's compilation. Learned counsel for the assessee, therefo....
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....er section 263 of the Act may call for and examine the records of any proceedings and if he considers that any order passed therein by the Assessing Officer is erroneous in so far as it is prejudicial to the interests of the Revenue, he may, after giving the assessee an opportunity of being heard and after making or causing to be made such inquiry as he deems necessary, pass such order thereon as the circumstances of the case justify. Therefore, before taking any action the learned Commissioner of Income-tax himself shall apply his mind after examining the record of any proceedings and his satisfaction is must. But in the instant case, the learned Commissioner of Income-tax nowhere recorded his satisfaction, rather the satisfaction was of t....