TaxTMI 
TaxTMI 
2016 (2) TMI 741
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.... respect to the receipt of Central subsidy (Food Processing) of Rs. 25 lakhs each for A.Y. 2007-08 and 2008-09 and the addition made to plant and machinery for the F.Y. 2006- 07 and 2007-08 amounting to Rs. 80,45,874 and Rs. 8,30,03,567 respectively. 2. Brief facts of the case are that the assessee company which is engaged in the business of manufacture and trading of edible oils, filed its return of income on 30.10.2007 for the A.Y. 2007-08 and on 25.09.2008 for the A.Y. 2008-09. Thereafter, there was a search and seizure operation in the case of the assessee and its group concerns on 30.06.2011. Accordingly, notices under section 153A of the Act for both the assessment years were issued on 27.02.2012. In response to the said notices, ass....
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....the A.O. to verify the Central subsidy for the relevant A.Ys and also directed the A.O. to re-do the assessment denovo, after providing reasonable opportunity to the assessee. Against this order of the Ld. CIT under section 263, the assessee is in appeal before us. 4. Challenging the validity of the proceedings under section 263 of the Act, Ld. Counsel for the Assessee, Mr. K.A. Saiprasad, submitted as under : 1. That the assessee had filed its returns of income for the relevant assessment years and since no notices under section 143(2) and 142(1) were issued by the A.O. within the specified time, the assessments for both the A.Ys got concluded even before the date of search on 30.06.2011. 2. During the course of search on 30.06.2011 a....
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.... makes it clear that the Ld. CIT was not sure as to the nature of the receipt and as to whether it was assessable as assessee's income and therefore, the Ld. CIT has not established the assessment order to be erroneous in so far as it is prejudicial to the interests of the Revenue and hence, also the order of the Ld. CIT under section 263 is not sustainable. In support of the above contentions, Ld. Counsel relied upon the order of the Tribunal in the case of Inventaa Chemicals Ltd., vs. ACIT 42 SOT 249. He also placed reliance upon the decision of Hon'ble Delhi High Court in the case of Kabul Chawla for the proposition that the complemented assessments can be interfered with by the A.O. while making the assessment under section 153A only on....
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....oup on 30.06.2011 but there was no incriminating material found or seized during the course of search. In view of the same, the A.O. completed the assessment under section 143(3) read with section 153A by accepting the returned income of the assessee. As seen from the order of the Ld. CIT under section 263 of the Act, the information about the Central subsidy received by the assessee during the relevant F.Ys was very much available on record during the assessment proceedings under section 143(3) of the Act and the nature of receipt was also evident from the orders of the Government of A.P. while making the payment of the subsidy. Therefore, it is evident that relevant material for consideration of the issue was very much available on record....