TaxTMI 
TaxTMI 
2013 (6) TMI 306
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....of law: 1. Whether on the facts and in the circumstances of the case, the learned Tribunal was right in law in holding that the CIT was not justified in holding that the addition of Rs.25,000/- to the trading results in the opinion of assessing officer just and proper and merely because the C.I.T. feels that the additions is not adequate he cannot seek to invoke his powers under Section 263 of the Act? 2. Whether on the facts and in the circumstances of the case the learned CIT was not justified in holding that the credits did not relate to or was not availed in the previous years but was an old balance of earlier years, no enquiry could have been validly undertaken by the assessing officer regarding these credits, the CIT was not jus....
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....- to the total income to cover up possible leakages. The AO thus computed the total income of respondent at Rs.13,27,090/-. 3. The Commissioner of Income Tax - II, Jabalpur (in short, "CIT"), however, in exercise of his powers under section 263 of the Act called for the record to examine the same as well as the order dated 1.10.1999 passed by the AO. He then issued a show cause notice to the respondent. 4. The respondent responded to the show cause notice by submitting a detailed reply. But the CIT did not agree with the same and held that there were no details before the AO as to whether the respondent was an authorized dealer of Hindustan Motors in the matter of selling cars or whether the sales were done in any other capacity an....
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....to be genuine then the question of making addition in the year in which it was availed should have been considered by the AO. The CIT, therefore, held that the AO should have conducted an enquiry. For these reasons, the CIT set aside the assessment order dated 1.10.1999 and remanded the matter to the AO to make a fresh assessment after holding detailed 5. Aggrieved, the respondent filed an appeal before the Tribunal and argued that the CIT committed an illegality by setting aside the assessment order in exercise of his powers under section 263 of the Act particularly when the order was neither erroneous nor prejudicial to the interest of the revenue. 6. The Tribunal, relying upon the Division Bench decision of the Bombay Hig....
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....rcise of such power. 8. In the light of the settled legal position with regard to the powers of CIT under section 263 of the Act we shall now examine whether, in the present fact situation of the case, the Tribunal rightly interfered with the order dated 13.12.2001 passed by the CIT. The Tribunal has noted that complaint of CIT in the show cause notice was that the trading result compared to the past was not better for the assessment year 1997-98; the expenditure claimed under the various heads lacked details; the closing stock was not valued properly; the expenses at Satna Head Office were claimed without there being any business; genuineness of credits appearing in the balance sheet had not been examined by the AO and payment to....