2016 (9) TMI 554

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....e case and in law, the Tribunal was justified in setting aside the order u/s 263 of the I.T. Act, 1961? 3. The respondent assessee is engaged in the activity of an Insurance Advisor and derives income from Insurance Commission. During the previous year relevant to the subject assessment year, the respondent assessee disclosed receipt of commission at Rs. 73.55 lakhs and showed an amount of Rs. 52.50 lakhs as Commission paid. Thus, crediting an amount of Rs. 21.05 lakhs to his Profit and Loss account. Further, the respondent assessee also claimed an amount of Rs. 15.38 lakhs as conveyance expenses and other expenses. During the course of assessment proceedings, both the above issues were examined and while passing an assessment order dated....

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....is evident from the order of the CIT(A) dated 28th August, 2011 wherein he records the inquiry conducted by the Assessing Officer. Thus, the impugned order holds that the view taken by the Assessing Officer was on enquiry and on the basis of facts before him, and the view taken was a possible view. Therefore, the order dated 28th August, 2011 of the Commissioner of Income Tax in exercise of powers under Section 263 of the Act, was quashed and set aside. 6. The only grievance of the Revenue before us is that the order dated 28th August, 2011 of the Commissioner of Income Tax ought not to have been disturbed. However, no submissions are made to asail the impugned order of the Tribunal. The order dated 28th August, 2011 of the Commissioner of....

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....e decision is held to be erroneous. Cases may be visualised where the Income-tax Officer while making an assessment examines the accounts, makes enquiries, applies his mind to the fact and circumstances of the case and determines the income either by accepting the accounts or by making some estimate himself. The Commissioner, on perusal of the records, may be of the opinion that the estimate made by the officer concerned was on the lower side and left to the Commissioner he would have estimated the income at a figure higher than the one determined by the Income-tax Officer. That would not vest the Commissioner with power to re-examine the accounts and determine the income himself at a higher figure. It is because the Income-tax Officer has ....