TaxTMI 
TaxTMI 
2015 (6) TMI 1153
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....dikilli on 11.10.2006. Consequent to the search, a notice under section 153A of the Act dated 10.03.2008 served on the assessee. In response to that, the assessee has filed return of income on 22.07.2008 admitting total income of Rs. 1,45,000/- claiming himself to be a Resident. During the course of assessment proceedings, the assessee has filed another return of income dated 25.11.2008 admitting total income of Rs. 58,64,292/- including therein the following: Gift from uncle vide letter dated 07.11.2008 Rs. 94,640/- Drawings Rs. 1,44,000/- Income from Canada Rs. 54,80,652/- In the assessment order, the Assessing Officer has observed that the assessee has claimed himself to be a Resident for the assessment year in the original return of income filed. From the evidence filed, the Assessing Officer noticed that the assessee was having foreign income, which should also be taken into account while computing the total income of the assessee. When the query was raised, on 25.11.2008, the assessee filed a revised return of income admitting income of Rs. 58,64,290/- including therein the above proposed additions by way of gift of Rs. 94,640/- and inadequate drawings of Rs. 1....
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....i Dhanabalasingam who has remitted money to his account. (viii) Investment A/c. As on 30.12.2003 and 30.06.2003. Thereafter, the ld. CIT, after receiving the above information forwarded to the Director, Foreign Taxation Division, CBDT, New Delhi with a request that in the light of the fresh information furnished before him, the same may be transmitted to the Canada Revenue Agency for necessary verification. The verification report from the Canada Revenue Agency has not been received in time and since the proceedings under section 263 are getting time barred by 31.03.2001, the proceedings are concluded by setting aside this issue to the file of the Assessing Officer with a direction for fresh consideration in accordance with law on receipt of the report from the Canada Revenue Agency. 5. Consequent to the order passed by the ld. CIT under section 263 of the Act dated 30.03.2011, the Assessing Officer has completed the assessment on 14.12.2011. As part of the proceedings under section 263 of the Act by the ld. CIT, the assessee was given a show cause notice dated 18.11.2010 as to why the credit for taxes on the Canadian income claimed to have been paid and given effect to in the ....
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....erest of the Revenue and issued notice to the assessee dated 28.02.2014. It was submitted before the ld. CIT that the assessment order is not erroneous and no prejudice caused to the Revenue and hence prayed that 263 proceedings may be dropped. 8. The ld. CIT, after considering the explanations of the assessee, has observed that the assessment was taken up for review since the tax credit under section 90 of the Act relating to Canadian incomes was wrongly allowed. As there was no proper documentation for the Canadian incomes earned and taxes paid thereon, the assessment has been set aside under section 263 to re-examine this issue by conducting necessary enquiries with the Canada Revenue Agency through Director, Foreign Taxation Division, CBDT. Hence, the Assessing Officer should have confined himself to this issue alone. However, the Assessing Officer has gone into the status of the assessee and changed the status from resident to non-resident which is not the mandate given to the Assessing Officer in the proceedings setting aside the assessment under section 263. This has resulted in non-assessing the Canadian incomes in India. Besides, the sources for remittances emanating from....
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....r passed by the ld. CIT again under section 263 of the Act. 13. We have heard both sides, perused the materials on record and gone through the orders of authorities below. There was a search and seizure operation under section 132 of the Act carried out in the residence of the assessee. Subsequently, a notice under section 153 was issued and return was also filed. The assessee, originally admitted an income of Rs. 1,45,000/- by claiming himself as resident. Again he revised his return of income during the course of assessment proceedings admitting an income of Rs. 58,64,292/- without changing his status. In the assessment proceedings, the assessee has claimed tax credit under section 90 of the Act and the Assessing Officer has allowed the claim of the assessee without examining whether the assessee is eligible or not. 14. Subsequently, the ld. CIT, while exercising power under section 263 and after detailed enquiry, he found that the details filed by the assessee with regard to the claim of tax credit are false. Subsequent to the order under section 263, the assessee filed details through his letter dated 13.01.2011. The proceedings are concluded by setting aside the above issue ....
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....that the CIT under section 263 of the Act, after examining the records and after making an enquiry, is empowered to pass such orders as the circumstances of the case would justify and he may pass n order enhancing the assessment, he can modify the assessment or he may cancel the assessment and direct for a fresh assessment. The CIT in the instant case has set aside the assessment directing the ITO to make a fresh assessment in accordance with law so as to exclude the losses of the cashew department and hessian department (if any) after giving adequate opportunity to the assessee. The order of the CIT setting aside the assessment his direction to make a fresh assessment in accordance with law cannot be read in isolation, but, it must be read in the context in which the CIT has exercised his powers of revision. In the present case, the ld. CIT has exercised his power in the context of tax credit claimed by the assessee under section 90 of the Act. The status of the assessee as to whether resident or non-resident is not before the ld. CIT. Therefore, the decision of the Hon'ble Jurisdictional High Court support the order passed by the ld. CIT dated 28.03.2014. 17. Therefore, in view ....