TaxTMI 
TaxTMI 
2016 (3) TMI 208
X X X X Extracts X X X X
X X X X Extracts X X X X
....also declared income from rent and other sources. It filed its return of income on 26.9.2008 declaring nil income. The Assessing Officer (AO) completed the assessment u/s 143(3) of the Income Tax Act 1961 (the Act) on 16.12.2010 determining the total income at Rs. ' nil' after inter alia making the following disallowances. (a) u/s 40(a)(ia) ) Rs. 64,699.00 (b) u/s 36(1)(va) r.w.s. 2(24)(x) at Rs. 1,36,422/-. The Ld.CIT, Meerut revised this order on the ground that it is erroneous and prejudicial to the interest of Revenue. The grounds on which the Ld.CIT(A) revised the order are listed below. (a) The assessee did not maintain the books of accounts as prescribed u/s 44AA r.w. rule 6F(3). (b) The AO acce....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er of the AO passed u/s 143(3) of the Act on 16.12.2010, nor there is any prejudice caused to the Revenue. Hence this ground of revision is devoid of merit. 6.1. Similarly on the directions of the Ld.CIT given to the AO to verify the unsecured creditors, unsecured loans, the AO in his fresh assessment order passed u/s 143(3) r.w.s.263 of the Act, did not draw any adverse inference. This direction of the Ld.CIT was in the nature of directing rowing enquiries. No specific finding was arrived at by the Ld.CIT that there was prejudice caused to the Revenue or that there was an error in the original order of the AO passed u/s 143(3) of the Act. Thus this ground of revision is bad in law. 6.2. This leaves us with the grievance against the f....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... skill is necessary. A company being an artificial person cannot be said to possess any personal skills. A company being an artificial person does not have a body and, therefore, cannot be engaged in any profession. It can neither have an intellectual skill or any manual skill. We are also of the view that even taking a broader and a more comprehensive meaning of the term profession one cannot extend the same to the case of an incorporated company as being capable of carrying of a profession. The skill involved in carrying out professional activity is predominantly mental or intellectual rather than physical or manual. We are, therefore, of the view that the requirement of Rule 6F(3) cannot apply to a person which is an incorporated company....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ises and conjectures. This cannot be sustained as it is totally arbitrary and illegal. 6.6. In the case of M/s Spectra Sahres and Scrips (P) Ltd. vs. CIT, 354 ITR 35 (AP) the Hon'ble A.P. High Court had considered a number of judgements of the Hon'ble Supreme Court as well as various High Courts and culled out the following principles that govern the powers of the Ld.CIT u/s 263 of the Act. "From the above decisions, the following principles as to exercise of jurisdiction by the Commissioner under section 263 of the Act can be culled out: (a) The Commissioner has to be satisfied of twin conditions namely : (i) the order of the Assessing Officer sought to be revised is erroneous; and (ii) ) it is prejudicial to the inter....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Officer is not called upon to write an elaborate judgement giving detailed reasons in respect of each and every disallowance, deduction, etc., it is incumbent upon the Commissioner not to exercise his suo motu revisional powers unless supported by adequate reasons for doing so ; that if a query is raised during the course of the scrutiny by the Assessing Officer, which was was answered to the satisfaction of the Assessing Officer, but neither the query nor the answer were reflected in the assessment order, this would not by itself lead to the conclusion that the order of the Assessing Officer called for interference and revision. (e) The Commissioner cannot initiate proceedings with a view to start Fishing and roving inquiries in ....