TaxTMI 
TaxTMI 
2016 (3) TMI 1178
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....r made u/s. 143(3) of the Act on 14.11.2011 is erroneous and prejudicial to the interest of the revenue. 3. Before us, the ld. counsel for the assessee vehemently submitted that the issues raised by the ld. Commissioner have already been addressed by the A.O in his assessment order after making detailed and exhaustive inquiries during the course of the assessment proceedings. It is the say of the ld. counsel that the directions given by the ld. CIT amounts to change of opinion since the A.O has framed assessment after making adequate inquiries about the issues on which proceedings u/s. 263 has been initiated. 4. Per contra, the ld. D.R. strongly supported the order of the Commissioner and stated that the assessment order made u/s. 143(3) ....
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....fficer has not verified the genuineness of labour charges paid to individual labour by examining such labourers. This examination was necessary on account of the claim of the assessee that the labourers were unpaid creditors for a long period, because labours cannot wait for the payment of their wages for a long period of 12 months or so. This examination was also necessary on account of the claim of the assessee that by making payments individually to each labour, the liability to deduct tax from the combined liabilities of such labourers standing in the names of their suppliers was not there. This inaction on the part of A.O is erroneous and is prejudicial to the interest of the revenue. 8. The above facts show that the assessment order p....
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.... copy of TDS returns and sales tax returns filed for the year. 7. To the specific queries, the reply of the assessee dated 05.09.2011 can be found at page 8 of the paper book in which Q3. has been answered as not applicable for Q5. Ledger copy of account of expenses exceeding Rs. 1 lac were filed in response to Q6.Copy of account with complete postal address and PAN of the sundry creditor were enclosed and for Q9. Copy of TDS returns and Sales tax returns filed for the year were enclosed. 8. After considering the detailed reply along with documentary evidences, the A.O in his assessment order observes as under:- 2. Subsequently, a notice u/s. 142 (1) along with questioner letter was issued on 05-08-2011 and served, requesting to....
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....roneous but is not prejudicial to the Revenue or if it is not erroneous hut is prejudicial to the Revenue- recourse cannot be had to section 263(1) of the Act. The provision cannot be invoked to correct each and every type of mistake or error committed by the Assessing Officer, it is only when an order is erroneous that the section will be attracted. An incorrect assumption of facts or an incorrect application of law will satisfy the requirement of the order being erroneous" 11. The AO has taken a view which may be different from the view of the Ld. Commissioner and assuming that the view taken by the AO is a loss to the Revenue but the Hon'ble Supreme Court in Malabar Industrial Co. Ltd. (supra) has held that " every loss of revenue ....