TaxTMI 
TaxTMI 
2018 (3) TMI 523
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....ssessee explained the reasons for the delay during the appeal hearing and filed the petition for condoning the delay. After hearing both the parties, the delay of 74 days is condoned and the appeals are admitted. 2. ITA Nos.298 &299/Viz/2012 are filed by the assessee against the orders of the Commissioner of Income Tax [CIT], Rajahmundry passed u/s 263 of I.T.Act vide F.No.H.Qrs.3/263/CIT/RJY/2010-11 and H.Qrs.4/263/CIT/ RJY/2010-11 dated 20.03.2012. Since the facts are identical and the issue involved is common in both the appeals, they are clubbed, heard together and disposed of by this common order for the sake of convenience. The relevant facts are extracted from ITA No. 298/Viz/2012 for the A.Y.2007-08 as under: 3. The assessee i....
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....ar 2007-08 and 2008-09 for revision u/s 263 and found that the orders passed by the AO were erroneous and prejudicial to the interest of the revenue since the AO has not considered the income and expenditure workings made on the basis of loose slips, daily sheets etc. found in the survey premises As per the paper book filed by the assessee page No.28 was the income and expenditure details of Godavari Sand Ramp, Ravulapalem for the financial year 2006-07, the net profit worked out to Rs. 38,77,491/-. Page No.28 stated to be statement of computation of income compiled by the Income Tax department as on the date of survey on the basis of evidence found during the survey. However, the said working was neither signed by the officer who compiled ....
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.... of the revenue, hence set aside the orders with direction to redo the assessments as per the observations made and directions given in the order under section 263. 5. Aggrieved by the order of the CIT, the assessee is in appeal before us. During the appeal hearing, the Ld.AR argued that survey u/s 133A was conducted in the premises of the assessee on 29.08.2007. The assessee is engaged in the sand mining at Ravulapalem and not maintaining any books of accounts. The only available material with the assessee was daily sheets, vouchers and expenditure slips, charts etc. On the basis of daily sheets available at the time of survey, the revenue has determined the sales at Rs. 2,49,65,610/- for the A.Y.2007-08 and Rs. 3,02,72,650/- for the as....
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....TR 776, hence argued that the order of the Ld. CIT passed u/s 263 is beyond the scope, erroneous which required to be quashed. 6. On the other hand, Ld. DR relied on the orders of the Ld.CIT. 7. We have heard both the parties and perused the material on record. In this case. Survey was conducted u/s 133A of I.T. Act in the business premises of the assessee and during the course of survey, the AO found that the assessee was not maintaining the books of accounts. The only material available with the assessee as on the date of survey was daily sheets of sales and loose slips and vouchers indicating certain expenses. On the basis of the material available, the revenue has worked out the income and expenditure account but it was neither si....
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.... the interest of the revenue giving scope for invoking the jurisdiction u/s 263. Similarly, in case, the assessment is completed u/s 143(3) by rejecting the books of accounts and estimating the income as held by Hon'ble Jurisdictional High Court in the case of Indwell Constructions Ltd. (supra), no other disallowance is required to be made. Therefore, the view of the Ld. CIT that the AO has not considered the disallowance u/s 40(a)(ia) is also a difference of opinion and does not give any possibility for invoking the jurisdiction u/s 263. Hence, we set aside the orders of the Ld.CIT passed u/s 263 and allow the appeals of the assessee. ITA Nos. 506 & 508/Viz/2016 8. These appeals are filed against the orders passed u/s 143(3) r.w.s. 2....