TaxTMI 
TaxTMI 
2016 (1) TMI 176
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....ice under section 142(1) was issued on 22.11.2011, in response to which, assessee filed its returns of income for all the relevant assessment years. During the assessment proceedings, the A.O. called for various details from the assessee. However, since there was no response from the assessee, the assessment was completed by the A.O. under section 144 read with section 153C for A.Ys. 2006-07 to 2009-10 and under section 144 read with section 153C for the A.Y. 2010-11 making various disallowances and additions. Subsequently, the Ld. CIT called for the assessment records in assessee's case by exercising the powers vested in him under section 263 of the I.T. Act and revised the assessment orders for all the years after issuing notice to the assessee under section 263 of the I.T. Act. Assessee preferred appeals before the ITAT against the orders under section 263. A.O. while giving effect to the order under section 263, has observed that the A.O. had examined the scrutiny proceedings under section 143(3) read with section 153C dated 26.11.2011 and has found that the said order was erroneous in so far as it was prejudicial to the interests of the Revenue for accepting the income returne....
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....ndra Kumar Bansal vs. CIT (supra) is applicable and the revision proceedings are to be declared as invalid. 4. The Ld. D.R. on the other hand, submitted that the recommendations of the A.O. were accompanied by the assessment records and therefore, it is to be presumed that the Ld. CIT has gone through the assessment records to make up mind as to whether revision proceedings are to be initiated or not and upon being satisfied about the requirement to revise the assessment order only, the notice under section 263 of the I.T. Act has been issued. Therefore, according to him, the additional ground of appeal raised by the assessee is not sustainable. 5. Having regard to the rival contentions and the material on record, we find that in the case of Dharmendra Kumar Bansal vs. CIT (supra), the A.O. therein had proposed the action under section 263 vide letter dated 02.09.2011 and the Ld. CIT had issued notice under section 263 on 09.01.2013 and thereafter, passed the order under section 263 of the I.T. Act by holding that the assessment order passed by the A.O. under section 143(3) of the Act without due and proper enquiry was erroneous and prejudicial to the interests of revenue. On....
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.... the Ld. D.R. has filed copies of the proposals under section 263 of the Act as well as the notice under section 263 which are both dated 14.03.2014. It is also seen from the same that reasons for initiating the proceedings under section 263 of the Act brought to the notice of the Ld. CIT by A.O. in the proforma for initiating proceedings, are reflected as the reasons for revising the assessment order. Thus, it is clear that the Ld. CIT has accepted the proposal of the A.O. without any further application of mind on his part. The Ld. D.R's contention that the proposals are accompanied by the assessment records and therefore, it is to be presumed that the Ld. CIT has independently applied his mind to the said proposal may be acceptable, if the Ld. CIT has taken time to go through the proposals and has also verified from the assessment records to independently to come to the conclusion that the assessment order is erroneous in so far as it is prejudicial to the interests of Revenue. For the sake of convenience and brevity, we reproduce the recommendations of the A.O. for A.Y. 2008-09 and also notice under section 263 of the I.T. Act to demonstrate that the Ld. CIT has not applied his....
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....n the assessee. *** Office of the Assistant Commissioner of Income-tax Central Circle-8, Hyderabad F.No.ACIT,CC-8/263/13-14 Dt.14-03-2014 Proforma for initiating proceedings u/s.263 for obtaining the approval of the Commissioner of Income-tax (Central), Hyderabad. 1 Name and address of the assessee M/s. Aashi Plywood Industries, Plot No.5,6,7,18,19&20, IDA, Patancheru, Hyderabad. 2 PA No./Asst. Year/Status AADFP9625M/2008-09/FIRM 3 Ward/Circle/Range Central Circle-8, Hyderabad. 4 Order u/s. & Date of the order sought for revision Order u/s.143(3) r.w.s.153C dated 25-12-2011. 5 Limitation date for revision Dt. 31-03-2014. 6 The quantum of income which has erroneous and prejudicial to the interests of the revenue. Not quantified. Reasons for initiation of proceedings u/s. 263 of the IT Act :- (1) As per balance sheet there is a minus balance of Rs. 1,56,77,454/- in the Partners' Capital account. As per deed of partnership, interest @12% was payable by the Firm on the credit balance in the partner's capital account. Similarly when there is debit balance i.e., minus bala....