AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2014 (12) TMI 186
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....ed in the said order are primarily factual and it has been observed that the assessee had submitted copies of accounts duly confirmed by all trade creditors and debtors, whose balances were in excess of Rs. 1 lac at the closing date of the year under consideration. The Tribunal accordingly set aside and quashed the order under Section 263 of the Act passed by the Commissioner of Income Tax. 2. The respondent-assessee is a partnership firm engaged in the business of readymade garments. Search and seizure proceedings were carried out under Section 132 of the Act on 16th October, 2007 in the case of Shri Dwarka Das Agarwal Group and search had also taken place in the business and residential premises of the respondent-assessee. Subsequently....
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.... by the respondent-assessee are more than 100 in number. The debtors and creditors, it was stated, were located all over India and the assessee had written and asked them for confirmations to be submitted to the department. 4. As noticed above, the last hearing before the Assessing Officer was held on 29th December, 2009. On the said date, the assessee had furnished several confirmations and documents. 5. In assessment order passed on 31st December, 2009, two additions of Rs. 11,94,982/- and Rs. 3,64,696/-, on account of discrepancies, were made. 6. The Assessing Officer, it is claimed by the revenue, had recorded the following office note:- "Office Note 1. All the documents/materials seized/impound during the course of the s....
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....ssment for fresh assessment as per law after affording opportunity to the assessee and upon making proper inquires and verifications. The reasoning of the Commissioner of Income Tax in his order under Section 263 of the Act dated 27th March, 2012 reads:- "It was observed that assessment has been completed by the Assessing Officer without obtaining the complete reply to the questionnaire annexed to notice u/s 142(1) dated 07/10/2009. In the above questionnaire, the assessee was inter alia asked to furnish copy of account, duly confirmed, of the parties from whom loans/deposits were given or taken and also in respect of debtors and creditors having balance above Rs. 1 Lakh. The above information was not fully furnished by the assessee insp....
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....reditor or debtor having a balance of Rs. 1 lac or more from whom confirmation had not been furnished has not been indicated or stated. The order passed by the Commissioner of Income Tax under Section 263 also does not give names and details of any creditor or debtor who had not furnished or given confirmation. Thus, the finding of the Tribunal cannot be held to be perverse. 11. Learned senior standing counsel for the Revenue had submitted that confirmations were filed on the last day and, therefore, they were not verified. Thus, Commissioner of Income Tax was justified in holding that the assessment order was erroneous and prejudicial to the interest of the Revenue. The said contention must fail for a number of reasons. Firstly, with re....
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....fective hearing was fixed on 26th October, 2009. Surprisingly, even the order sheets between 26th October, 2009 till 23rd November, 2009 are not on record and have not been shown. A reading of the questionnaire going into 9 pages would indicate that enormous and magnitudes of details/information were asked for. This would have required time for compilation, affirmation and clarification. The queries were answered by several letters on record. For confirmations, the assessee had to write letters to the creditors and debtors all over the India and wait for their response. The Tribunal has noted that the assessee had submitted bill, invoices, vouchers etc. to the Assessing Officer. 13. Normally, scrutiny assessment order under Section 143(3....