TaxTMI 
TaxTMI 
2010 (12) TMI 671
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....owing substantial question of law has been claimed for determination by this Court: "Whether on the facts and in the circumstances of the case, the Ld. ITAT was right in quashing the order passed by the CIT, Panchkula, u/s 263 of the I.T. Act?" The facts of the case, necessary for adjudication and as narrated in the appeal, are that the assessee filed return for the assessment year 1999-2000 declaring net taxable income of Rs. 6,865/- whereas an advance tax of Rs. 2,00,000/- had been deposited by him as against the tax worked out at Rs. 2,405/-. The assessee, thus, claimed refund of Rs.1,97,595/-. A survey operation u/s 133-A of the Act was carried out at the business premises of the assessee on 11/12.3.1999. Certain discrep....
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.... of mind, without proper examination of record and the material before him. It has been observed that the books of accounts have not been examined by the Assessing Officer. There is no mention either in the note sheet or in the body of the assessment order to indicate that books of accounts were examined. The AO simply accepted the assessee's proposition that if there were sales outside the regular books of accounts, there must be corresponding purchases also outside the books of accounts while it had categorically stated in its earlier letter dated 7.2.2002 that the purchases had been included in the total purchases recorded till the date of survey. The partner had admitted on the date of survey that the purchases had been recorded but tha....
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....bsp; Feeling not satisfied, the assessee filed appeal before the Tribunal. The appeal was allowed and the order of the CIT passed under Section 263 of the Act, was set aside by the Tribunal vide the order under appeal. Hence, this appeal at the instance of the Revenue. The point for determination in this appeal is, whether the CIT was justified in resorting to the revisional jurisdiction under Section 263 of the Act in respect of surrender of Rs.14,00,000/- made by the assessee at the time of survey of its premises. The Tribunal while allowing the appeal of the assessee has nullified the order passed by the CIT under Section 263 of the Act, and recorded as under: "We have heard the rival submissions, perused the orders pass....
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....ssumption of jurisdiction u/s 263 by the CIT on the reasoning that such view of the AO was erroneous and prejudicial to the interests of the revenue, on the basis of recast trading account, tantamounts to the second view by recasting the trading result of the assessee for the same period, which had already been considered by the AO while completing the assessment u/s 143(3) and such order of the AO cannot be held prejudicial to the interests of the revenue, as held by the apex court in the case of Malabar Industrial Co. Ltd. (supra). While coming to such conclusion, we draw support from the latest decision of the Tribunal in the case of Nahar Exports Ltd. Vs. ACIT, reported in 92 ITD 484 (Chd), wherein it was held that if the AO had taken o....