TaxTMI 
TaxTMI 
2014 (2) TMI 177
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....the facts and in law, the Income-tax Appellate Tribunal is right in holding that the view taken by the Assessing Officer is legally sustainable in law ignoring the fact that no proper examination was done nor any inquiry was made by the Assessing Officer during the course of assessment proceedings and thereby holding that revisionary proceedings under section 263 are unwarranted ? (ii) Whether, on the facts and the circumstances of the case, the Income-tax Appellate Tribunal is right in law in holding that Explanation 3 to section 40(b) of the Income-tax Act, 1961, cannot empower the Assessing Officer to go behind the net profit shown in the profit and loss account nor he is empowered to decide under which ....
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....iating the assessment proceedings under section 143(3). In response to the notice issued under section 143(2) and subsequent section 142(1) notices, Shri V. S. Halbhavi, chartered accountant, duly authorised by the assessee appeared on behalf of the assessee-firm and produced the books of account, bills and vouchers and other details called for, vide this office letter dated July 11, 2008. It is seen that the assessee is carrying on business of manufacture of CI castings and alloys deriving receipts on labour charges and also effecting own sales. As the turnover during the year has exceeded Rs. 40 lakhs, the assessee's books of account have been duly audited by the chartered accountant and reporting Form No. 3CB and Form No. 3CD have been f....
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....ration payable under section 40(b) of the Income-tax Act, 1961, the interest income is not to be considered, as the same is to be assessed as income from other sources. Hence, the allowable remuneration under section 40(b) of the Income-tax Act, 1961, is to be reworked out, (iii) The applicability of section 40(a)(ia) needs to be examined, (iv) The sum of Rs. 25,00,000 debited to the profit and loss account on account of partnership insurance, whereas the policy is in the name of the partner, the deduction claimed by the firm on this account needs to be disallowed. 3. The aforesaid four points having not been looked into nor considered or appreciated by the Assessing Officer, the Commissioner o....
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.... has erred in making observations contrary to the observations made by the Commissioner of Income-tax regarding satisfying of two ingredients for reviewing the order under section 263 of the Act. To substantiate his contention, he has taken us through paragraph 9 of the reasoning given by the Tribunal wherein it is stated that in respect of applicability of the TDS provision the Assessing Officer has obtained all the information of labour charges, felting charges and moulding charges and found that the TDS provision is not applicable to these expenses contrary to the order passed by the Assessing Officer. Therefore, the impugned order passed by the Tribunal is liable to be set aside and the order passed by the Commissioner of Income-tax be ....
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....der section 263 of the Act by the Commissioner of Income-tax and further he has failed to give any reasons in the order as to why he wants to interfere and the loss for the Revenue is not forthcoming. 6. After careful consideration of the submission made by the learned counsel appearing for both the parties and after perusal of the impugned order, it is manifest on the face of the order of the Tribunal that it has committed grave error muchless material irregularity and proceeded to pass the impugned order. As rightly pointed out by the learned counsel for the appellant specifically at paragraph 9 of the order it is stated that in respect of the applicability of TDS provision, the Assessing Officer has obtained all the information of lab....