2019 (5) TMI 190

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....for the Assessment Year 2002-2003. 2. This Appeal was admitted by a Co-ordinate Bench of this Court on 06.03.2009 on the following substantial Questions Of Law: "1.Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal is right in law in rejecting the appellant's contention that the provisions of Section 263 of the Income Tax Act are applicable to the assessment made under Section 143 (3) of the Income Tax Act in respect of Assessment Year 2002-03? 2.Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal is right in law in not holding that when the expenditure is incurred in foreign currency is excluded from the "export turnover" based on th....

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.... 143 (3) and the Assessing Authority has called for details and explanations on number of points and the assessee had submitted such details from time to time for the consideration of the Assessing Authority. But that does not mean that the Assessing Authority has applied his mind in a proper manner in so far as the major point involved in the assessment concerned. It is true, generally speaking, the Assessing Authority may discuss only those points in detail which are likely to be held against the assessee and no detailed discussion woud be made in matters to be decided in favour of the assessee. This is a general Rule. But no rule is without exception. Here, the Assessing Authority was dealing with an item excluded from ....

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....nt order is erroneous and prejudicial to the interest of the Revenue. On this short ground itself we find that the contentions advanced by the assessee are liable to be dismissed. 20. Regarding application to Section 14A, again we have to state that the Assessing Authority has not applied its mind in realistic manner. The only explanation offered by the assessee was that it had not incurred any directe expenditure in earning the dividend income. The expression "direct expenditure" is an expression of accounting convenience. The absence of direct expenditure does not mean that no expense attributable to the earning of dividend income was incurred by the assessee. As accountancy is not exact science, the Concepts and Rules relating t....