2014 (12) TMI 1317

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....ent order U/s.263 of the I.T act 1961 without appreciating the fact of the case. 2. For that the ld. Commissioner of Income Tax erred both in Law and in fact by not accepting the settled Law as per the apex court order as reported in 2343 I.T.R in the case of Malabar Industrial Co. Ltd V. CIT(2000) 243 ITR 83. 3. For that the said order is illegal void abinitio as it seeks to violate the principle of natural Justice. 4. For that the appellant Co. craves leave to put further grounds and to alter and/or modify any of the grounds taken here in above either before or at the time of hearing of appeal. 3. In this case the ld.CIT has passed his order u/s. 263 of the Act by observing as under:- Ïn this case the assessee company filed its ....

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....ounsel of the assessee submitted that the order passed u/s. 263 of the Act by the ld.CIT is not at all sustainable. He submitted that there is no finding of the ld.CIT that the order of the assessing officer is pre-judicial or erroneous. In this regard, he referred to the decision of the Hon'ble Apex Court in the case of Malabar Industrial Co. Ltd V. CIT reported in (2000) 243 ITR 83 (SC). The ld. Counsel of the assessee pleaded that the order of the ld.CIT passed by the ld.CIT u/s 263 of the Act is liable to be quashed inasmuch as no error or prejudice to the interest of revenue has been found by the ld.CIT in his order. Per contra, the ld.DR has relied upon the order of the ld.CIT in referring the same to the table of the AO for re-co....

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....w that whenever above payments are made invariably the TDS has to be deducted. The TDS is deductible only if the conditions specified for deduction of TDS are existing. Hence, the ld.CIT's observation in the order that the AO's order is erroneous and prejudicial to the interest of the revenue has no basis whatsoever. Further, we find that the observation of the ld.CIT that the AO's order being erroneous and prejudicial to the interest of the revenue is emanating from the show cause notice. In the operative part of the order passed u/s. 263 of the Act the ld.CIT has held that he was of the view that the issue needs re-consideration, therefore, he was setting aside the issue and referring back to the table of the AO for re-conside....