TaxTMI 
TaxTMI 
2014 (11) TMI 292
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....ue . Our attention was invited to the notice dated 25/7/2011, issued to the assessee by the Assessing Officer asking for certain details which was responded vide communication dated 8/8/2011 in which every details were provided to the Assessing Officer. Our attention was invited to paper book pages 17 and 57. It was pleaded that at page 57 the necessary details and analysis of loose papers is available along with at pages 67, 68 and 71. It was specifically pointed out that a detailed analysis is at page 71. It was explained that again notice u/s. 142(1) of the Act was issued to the assessee asking the assessee to furnish various details (pg-77 onwards ) which was also responded vide communication dated 27/12/2011 (pg-79 onwards). The ld. Counsel for the assessee explained that pursuant to specific direction issued to the assessee by the Assessing Officer, the assessee furnished the details within the time bound limit. Our attention was further invited to the order sheet of the Assessing Officer running into six pages calling for various details. Reliance was placed upon the decision in 203 ITR 108 (Bom.) regarding non-application of mind by the Assessing Officer . The ld. Counsel f....
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.... has filed its return of income on 19/9/2009 declaring total income of Rs. 13,75,080/- (Refer Page No.56 to 57). Thereafter a survey action u/s. 133A of the Act was undertaken on 5/3/2010 at the premises of the assessee . subsequently the assessee filed a revised return of income 23/4/2010 declaring total income of Rs. 1,58,75,078/- including income of Rs. 1,45,00,000/- declared during the survey action (Refer Page No.58 to 61). The return was processed u/s. 143(1) of the Income tax Act. The case was selected for scrutiny and notice u/s. 143(2) of the Income tax Act, 1961 were issued. All the relevant details were filed during the course of assessment proceedings. Regular assessment u/s. 143(3) of the Income tax Act was completed by the DCIT 20(2)-Mumbai(Assessing Officer) vide his order dated 29/12/2011 determining total taxable income at Rs. 1,57,75,080/- (Refer Pg. No.106 to 107). Now your honour has issued above show cause notice to initiate the proceedings u/s. 263 of the Act. In this connection we at the outset submit that the proceedings u./s. 263 of the Act can be invoked only if the order of the AO is erroneous in so far as prejudicial to the interest of the Revenue . It ....
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....er but from the record we found that this observation by the ld. CIT is factually incorrect as is evident from the record made available by the assessee . It is pertinent to mention her that the Assessing Officer again issued a notice u/s. 142(1) dt.26/12/2011 (pg-77 of the paper book) asking the assessee to furnish the details regarding the amount of Rs. 1.45 crores, filing of revised income and loose paper etc. The assessee was directed vide para-3 of the said notice which is reproduced hereunder :- "3. Please note that the date and time fixed for your compliance to this notice is 28/12/2011 at 2.00 P.m. in my officer at Room No.612, 6th Floor, Piramal Chamber, Parel, Mumbai. 4. It may please be noted that failure to comply with the requirement of this notice attracts penal provisions as per sections 271(1)(b) of the I.T. Act. Further it may also be noted that in case of non-submission of details required for completing the assessment u/s. 143(3), the assessment will be completed on the basis of details on record, without further reference in the matter." 3.2.1 The assessee, as directed, duly responded and filed its reply vide communication dated 27/12/2011, (pg-79 onwards of ....
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....of mind by the Assessing Officer . The Tribunal was right and the order of revision was not valid." 3.2.2 The aforesaid order clearly fits into the facts before us . While coming to the aforesaid conclusion the Hon'ble High Court duly considered the decision in CIT vs. Sunbeam Auto Ltd. (2011) 332 ITR 167 (Del.) (para-6 & 7). We are expected to ascertain whether the Assessing Officer had investigated the issue and applied his mind towards the whole record made available by the assessee during assessment proceedings. Uncontrovertedly, necessary details were produced and examined by the Assessing Officer, therefore, it is not a case of lack of enquiry by the Assessing Officer. Identical ratio was laid down by the Tribunal in the case of Reliance Gas Transportation Infrastructure Ltd. vs. CIT (2014) 100 DTR (Mum.) (Trb.) 1 , order dated 10/1/2014, wherein one of us (ld. AM) is signatory to the order. In another case from Hon'ble Jurisdictional High Court in CIT vs. Development Credit Bank Limited (2010) 323 ITR 206, on identical fact wherein assessment order was passed after considering all details called for and furnished by the assessee. The ld. Commissioner invoked revisio....