2018 (2) TMI 1625

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.... of aerosol components and products. For the assessment year under dispute assessee filed its return of income on 29/09/2012 declaring income Rs. 45,93,110/-. Assessment in case of the assessee was completed under section.143(3) of the Act accepting the income returned by the assessee. Subsequently, ld. Pr. Commissioner of Income Tax exercising his powers under section.263 of the Act called for the assessment record of the assessee and after examining the same, he found that in the profit and loss account assessee has debited an amount of Rs. 30,09,489/- towards repairs and maintenance of building which has been claimed under the head 'manufacturing expenses.' Further, he found that under the head 'sales and administrative expenses', the as....

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....rs for continuing the manufacturing operation without any interruption. It was submitted, the expenditure incurred by the assessee has to be viewed in the context of the extensive structure of the plant on a large plot of land of 12,535 sq.mtr. Therefore, it cannot be said that the expenditure is for bringing into existence an asset of enduring nature. As far as payment of excise duty penalty of Rs. 16,18,525/- is concerned, it was submitted, the entire amount does not represent penalty but due to wrong computer coding it has been mentioned as excise penalty. Furnishing bifurcation of the payment made, it was submitted by the assessee that the quantum of penalty was only to the tune of Rs. 1,04,500/-. The ld. PCIT, however, was not convince....

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.... Rs. 16,18,525/- is concerned, the ld. Authorised representative submitted, the entire amount is not towards penalty but an amount of Rs. 1,04,500/- out of that is towards penalty. He further submitted, details of excise duty payment were furnished before the Assessing Officer during the assessment proceedings and the Assessing Officer has examined the same. Thus, the learned Authorised Representative submitted, since, the Assessing Officer has completed the assessment after due enquiry and examination the exercise of power under section.263 was improper. In support of such contention, he relied upon the followingdecisions:- i. CIT v/s. Nirav Modi (2017) 390 ITR 292 (Bom) ii. CIT V/s. Gabriel India Ltd., (1993) 203 ITR 108....

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....d is, after discussion with the assessee's authorized representative he is finalizing the assessment. Though, the learned Authorized Representative referring to the documents submitted in the paper book has tried to impress upon us that the Assessing Officer has enquired into and examined all the issues on which the assessment order has been held to be erroneous and prejudicial to the interest of revenue, however, on a specific query from the bench, the learned Authorised Representative was unable to furnish even a single notice or order sheet entry to demonstrate that the Assessing Officer has conducted any enquiry on the issues on which ld. PCIT held the assessment order to be erroneous and prejudicial to the interest of revenue. 10. O....