TaxTMI 
TaxTMI 
2018 (12) TMI 1345
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....t-assessee had filed returns of Income for the relevant years declaring some taxable income whereupon notices under Section 143(2) and 142(1) of the Income Tax Act, 1961 (hereinafter referred to as "the Act") were issued. In the meantime, search and seizure operations were conducted upon the assessee. In pursuance thereto, the assessee filed revised returns declaring some additional income. The revised returns were accepted on the same date under Section 143(3) of the Act. The Commissioner of Income Tax (Central), Kanpur called for the records of the assessee and issued notice under Section 263 of the Act and the assessment orders passed by the Assessing Officer were set-aside with the direction to complete the re-assessment as per the d....
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....reveal that in pith and substance the contention of the Revenue is that the appellate tribunal is not right in setting aside the order of the CIT(C). Therefore, the only question of law which may arise is whether under the facts and circumstances of the case the appellate tribunal was justified in holding that the CIT(C) has wrongly exercised jurisdiction under Section 263 of the Act. The question whether an order passed by the appellate tribunal is right or wrong or that it has rightly or wrongly set-aside the order of the CIT(C) is ex-facie not a substantial question of law rather a mixed question of fact and law. In view of the above, we have permitted Sri Gaurav Mahajan, learned counsel for the Income Tax Department to argue the m....
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....giving the assessee an opportunity of being heard and after making or causing to be made such inquiry as he deems necessary, pass such order thereon as the circumstances of the case justify, including an order enhancing or modifying the assessment, or cancelling the assessment and directing a fresh assessment. Explanation...... (2) .................... ....................." A reading of the above provision makes it abundantly clear that to exercise the jurisdiction of revision under Section 263 of the Act the Commissioner has to be satisfied, on the basis of the record, that the order of the Assessing Officer is not only erroneous but is also prejudicial to the interests of the Revenue. Thus, the fulfilment of....
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....sed return were accepted on the date they were submitted and without following the procedure prescribed under Section 143(3) of the Act. The relevant part of Section 143(3) of the Act reads as under: "143(3) - On the day specified in the notice issued under sub-section (2), or as soon afterwards as may be, after hearing such evidene as the assessee may produce and such other evidence as the Assessing Officer may require on the specified points, and after taking into account all relevant material which he has gathered, the Assessing Officer shall, by an order in writing, make an assessment of the total income or loss of the assessee, and determine the sum payable by him or refund of any amount due to him on the basis of such asse....
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....he above finding, we are unable to appreciate the argument advanced on behalf of the Revenue that the procedure prescribed under Section 143(3) of the Act was not followed by the Assessing Officer and, therefore, the CIT(C) had rightly exercised the revisional power. In Commissioner of Income Tax Vs. Mahendra Kumar Bansal, Muzaffarnagar 2008 UPTC - 1067 (Alld.) a Division Bench of this Court has held that mere fact that the assessment order was passed on the same and the returned income was accepted or that the order of the Assessing Officer is brief and cryptic would not suffice to brand the order to be erroneous and prejudicial to the interests of Revenue. Similarly, failure to discuss the queries made by the Assessing Officer and t....