2015 (4) TMI 508

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....ts : Ms Niyati Hakani & Mr Prakash Shah ORDER This Appeal of the Revenue is challenging the order dated 25th July, 2012 of the Income Tax Appellate Tribunal, Mumbai Bench in Income Tax Appeal No. 3410/Mum/2008. The assessment year is 2003-04. 2. An order under section 263 of the Income Tax Act, 1961 (for short the "IT Act") was passed by the Commissioner of Income Tax Mumbai on 31st March....

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....tice about the system of accounting and the Assessee receiving a sum of Rs. 91,41,31,695/- and therefore, disclosing lesser income. However, the show cause notice was silent on this and yet in the final order, these observations or findings have been rendered. That would vitiate the final order of the Commissioner under section 263 of the IT Act. 5. Mr. Malhotra appearing for the Revenue submit....

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....the other hand, Ms. Niyati Hakani appearing for the Assessee would support the Tribunal's order and submit that no substantial questions of law arise as the Tribunal has taken a correct view of the proceedings. We find that the Commissioner issued a notice under section 263 of the IT Act. The Tribunal found in para 8 that as per the notice and particularly para 3 thereof, the Commissioner was ....

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.... forming part of the show cause notice, has been referred and conclusion thereon is rendered. That is in relation to alleged system of accounting adopted by the Assessee, which is stated to be the mercantile system and that is why there is disclosure of lesser income. Nowhere in the show cause notice any system of accounting has been referred nor disclosure of any lesser income over and above what....