TaxTMI 
TaxTMI 
2016 (7) TMI 511
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.... 143 (3) of the Act, on 03/02/2015, determining the income of the assessee at Rs. 7, 61, 790/-. 2. On examination of record, the CIT found that the assessee had claimed loss from house property, amounting to Rs. 3, 00, 990/- which was set off from income of business and profession, that the possession of the flat was to be given to the assessee by the developer on 31/12/2012, that there was no scope for taking possession of the flat in the financial year 2011-12 and claiming the loss in-house property. The CIT held that the AO had failed to examine the issue and had allowed the claim, that the order passed by the AO was erroneous and prejudicial to the interest of revenue. He issued a show cause notice proposing to revise the order of th....
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....t make any independent verification or examined the record, that the revision order was based on new facts/grounds, that the facts/ground mention in the show cause notice were not the basis for the revisionary order, that the CIT had directed the AO to disallow the loss of Rs. 3, 00, 990/- under the head income from house property without explaining as to why the loss was not eligible, that the assessee was owner of the flat, that the income from the house property was liable to tax and correspondingly he was entitled to interest deduction u/s. 24 (b) of the Act. He referred to the cases of Malabar Industrial Company Ltd. (243 ITR 83)Grasim Industries Ltd. (321 ITR 92) Design and Automation Engineers (Bombay) (P) Ltd. (323 ITR 632), Sunbeam....
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....after making enquiry and AO decides not to write a detailed order, the assessee cannot be penalised for it. The duty of an assessee is to furnish the details required by the AO-he cannot do more than that. It is the duty of the AO to analyse the documents submitted before him and to determine the tax liability. In the case under consideration notice u/s. 142 (1) was issued calling for various details including the investment made in the flat by the assessee. The assessee had furnished the agreement of purchase of flat to the AO and the letter of the assessee issued by the builder. From the letter it was clear that the possession of the flat was handed over to the assessee before the year-end i. e. on 27 March of the year under appeal. The l....
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....pplying the principles of natural justice or without application of mind. The phrase ''prejudicial to the interests of the Revenue'' is not an expression of art and is not defined in the Act. Understood in its ordinary meaning it is of wide import and is not confined to loss of tax. The scheme of the Act is to levy and collect tax in accordance with the provisions of the Act and this task is entrusted to the Revenue. If due to an erroneous order of the Income-tax Officer, the Revenue is losing tax lawfully payable by a person, it will certainly be prejudicial to the interests of the Revenue. The phrase ''prejudicial to the interests of the Revenue'' has to be read in conjunction with an erroneous order passed by the Assessing Officer. Every....