TaxTMI 
TaxTMI 
TaxTMI 
2016 (7) TMI 271
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....l contracts, filed its return of income for the assessment year 2009-10 on 29.9.2009 admitting total income of Rs. 7,50,737/-. The case has been selected for scrutiny and accordingly, notice u/s 143(2) & 142(1) of the Act were issued. In response to notice, the authorized representative of the assessee appeared from time to time and submitted books of accounts and other information called for. The A.O. after examining the books of accounts and other details completed the assessments and accepted the income returned. 3. The CIT-1, Visakhapatnam issued a show-cause notice dated 2.5.2013 and asked to explain why the assessment order shall not be revised u/s 263 of the Act. The CIT proposed to revise the assessment order for the reasons that o....
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....ed by the A.O. u/s 143(3) of the Act dated 2.11.11 is erroneous in so far as it is prejudicial to the interest of the revenue. 4. In response to show cause notice, the assessee submitted that the assessment order passed by the A.O. u/s 143(3) of the Act is not erroneous in so far as it is prejudicial to the interest of the revenue, as the A.O. has examined the issue of TDS in respect of rent and hire charges. The assessee further submitted that it has furnished books of accounts and other relevant information at the time of assessment, the A.O. after satisfied with the details furnished by the assessee has accepted the income declared and completed the assessment. It was further submitted that it has been executing civil works for last two....
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....ing the assessment for the assessment year 2009-10. Aggrieved by the CIT order, the assessee is in appeal before us. 5. The Ld. A.R. for the assessee submitted that the assessment order passed by the A.O. u/s 143(3) of the Act is not erroneous in so far as it is prejudicial to the interest of the revenue, as the A.O has examined the issue of net profit and also TDS on rent and hire charges at the time of completion of assessment. The A.R. further submitted that the CIT was not correct in directing the A.O. to enhance the assessment to give effect to the directions u/s 263 of the Act without examining the fact that whether particular expenditure is disallowable u/s 40(a)(ia) of the Act. The A.R. further submitted that the assessee has incur....
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....r the reason that the net profit declared by the assessee is less and also the assessee has not proved whether TDS has been deducted in respect of expenditure incurred under the head rent and hire charges. It is the contention of the assessee that the issues raised by the CIT have been examined by the A.O. at the time of completion of assessment. The assessee further contended that whether or not TDS has been deducted in respect of rent and hire charges, once the expenditure has been paid during the same financial year and nothing is payable at the end of the financial year, then in view of the decision of ITAT, Visakhapatnam special bench in the case of Merilyn Shipping & Transports (supra), no disallowance can be made u/s 40(a)(ia) of the....
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....of assessment, the CIT has no jurisdiction to entertain fresh enquiry on the same issues, because he has a different opinion on the issues. In our considered opinion, the issue of net profit and TDS on rent and hire charges has been examined by the A.O. at the time of assessment, therefore, the CIT was not correct in coming to the conclusion that the A.O. has not examined the issues. 9. The CIT has power to revise the assessment order u/s 263 of the Act, but to invoke the provisions of section 263 of the Act, the twin conditions must be satisfied i.e. (1) the order of the A.O. is erroneous and (2) Further it must be prejudicial to the interest of the revenue. Unless both the conditions are satisfied, the CIT cannot assume jurisdiction u/s ....