TaxTMI 
TaxTMI 
2014 (11) TMI 228
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....ether the ITAT erred in law in interpreting the language of Section 263 in the context of the present case where no finding or enquiry has been done by the AO; B. Whether the ITAT erred in law in interpreting the phrase 'erroneous insofar as prejudicial to the interest of the revenue' specially when the order under Section 263 highlighted the lacunae in the assessment order; C. Whether the ITAT erred in law in curbing the legislative powers of the CIT under Section 263 when it concluded that inadequacy of enquiry cannot be a ground for invoking powers under Section 263; and D. Whether in the facts and circumstances of the case, the learned ITAT has erred in law and in fact in holding that the Assessing Officer had conducted....
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....ssee in the form of loans. The Commissioner noted that whereas on the one hand loans were advanced to the assessee at or about a proximate point in time, gifts in similar amounts had also been advanced. The Commissioner observed that these loans were unquestioningly accepted by the Assessing Officer despite the fact that the identity and capacity of the persons to whom the loans had been given had not been established. Letters which were addressed to the alleged lenders had been returned unserved and the assessee expressed his inability to furnish their current addresses. The Commissioner made a detailed enquiry and summarized the evidence which was gathered in the group of cases pertaining to the family of the assessee during the course of....
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....l appearing on behalf of the assessee has supported the order of the Tribunal and has urged that the order of assessment was made after a detailed enquiry by the Assessing Officer and hence there was no occasion to exercise the jurisdiction under Section 263 (3). Under Section 263, the test is whether the Commissioner has any material on the basis of which he considers that an order passed by an Assessing Officer is 'erroneous insofar as it is prejudicial to the interests of the revenue'. In Malabar Industrial Co Ltd Vs Commissioner of Income Tax4, the Supreme Court has interpreted these provisions in the following observations: "There can be no doubt that the provision cannot be invoked to correct each and every type of mista....
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....resent case, the order of the Assessing Officer was to the following effect: "Assessee filed his return of income on 29/3/2004 on a total income of Rs. 1,56,210/-. The same was processed under Section 143 (1) on the income returned on 8/7/2004. A refund of Rs. 5,545/- was issued to the assessee accordingly. Later on, the case was picked up for scrutiny and therefore statutory notices were issued from time to time. In response thereof, Shri R K Garg & Nitin Garg Advocates had attended the proceedings and filed required details and documents relevant to the assessment proceedings. The case was discussed with them at length. 2) Assessee derives income from salary, property and partnership business with M/s New Marble Home and M/s Jain Ma....