TaxTMI 
TaxTMI 
2017 (11) TMI 1755
X X X X Extracts X X X X
X X X X Extracts X X X X
....7 in I.T.A. Nos. 354/Vizag/2011 and 353/Vizag/2011 respectively, raising the following two substantial questions of law: (a) Whether on the facts and in the circumstances of the case and in law, the Appellate Tribunal was correct in setting aside the order of the CIT passed under Section 263 of the IT Act on the ground that the Assessing Officer has taken one of the possible views whereas there did not exist any alternative to the only view that income from godown rent could be determinable independent of income from civil contract receipts having regard to the fact that normal expenditure in relation to rental receipts is far below that in relation to civil contract receipts? (b) Whether on the facts and in the circumstances of the ca....
X X X X Extracts X X X X
X X X X Extracts X X X X
....me Tax Appellate Tribunal, on the specific ground that invocation of the provisions under Section 263 of the Act itself is not warranted, as the conditions precedent for such invocation are not satisfied. Sri K. Raji Reddy, learned Senior Standing Counsel for Income Tax Department submits that for the AYs 2004-05 and 2005-06, on account of the disputes among the partners, though the firm had returned income on estimate basis, at 7.5% of the gross receipts, the AO initially proposed to enhance the same to 12.5% and on the assessee placing the material before the AO for the AY 2004-05, the income was worked out at 10%. The AO also accepted the explanation of the assessee, for the earlier years, that the stevedoring, clearing and forwarding a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....this conclusion, the Tribunal had examined the material on record and did not accept the argument of the Revenue that the rentals from the godowns are required to be assessed at a higher rate of 12.5%. In our opinion, as the AO had opined that renting of the godowns is integral in the business of the assessee and as the decision arrived at by the Tribunal being on appreciation of facts and the reason for invocation of Section 263 being that there is a possibility for estimating the income at a higher rate, without there being a finding of error in the Assessment Order, a resort to Section 263 of the Act cannot be made . In the absence of any other material placed before this Court, in the facts of the present case, question No.1 is require....