TaxTMI 
TaxTMI 
2019 (11) TMI 1006
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.... erred in passing an Order u/s 263 of the I.T. Act, 1961 as the Proceedings initiated u/s 263 are not valid in law. GROUND NO. 2 2.1 The Pr. CIT Delhi-19 had initiated revision proceedings in order to carry out fishing and roving enquiry in the matters which had already been concluded and which were not permissible u/s 263 of the Act. 2.2. The Assessment Orders u/s 143 (3) and u/s 147 could not be considered erroneous and prejudicial to the interest of the revenue for the following reasons: 2.3 The Assessing Officer had taken the possible views after application of mind but Pr. CIT Delhi-19 had not demonstrated how the Orders passed by the Assessing Officer were not only erroneous but also prejudicial to the interest of the Revenue ....
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....he involvement of expenses of personal and unverifiable nature. 2. Post re-assessment u/s 143(3), the case was examined in the office of PCIT-19 wherein it is found that some points/issues should have been examined/ verified by the A.O. during the proceedings u/s 143(3), but he failed to do so. Consequently notice u/s 263 was issued to the assessee show causing on points/issues which are hereunder:- To, Sh. Shelendra Kumar Jain, 76-B, DDA Flats, Jhilmil Colony, Vivek Vihar, Delhi-110095 Sir, Sub: Notice u/s 263 of the I.T. Act, 1961 in the case of Sh. Shelendra Kumar Jain (PAN: ADJPJ4984G), 76-B, DDA Flats, Jhilmil Colony, Vivek Vihar, Delhi-110095, A.Y. 2012-13 - Regarding 2. You have e-filed the return of income on 30.....
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....quested to produced ledger and confirmation from the purchase parties. v) You have debited various other expenses in P & L account totally to Rs. 7.19 cr. in this respect, details of the same were not called for during the assessment proceeding. In view of the above, you are required to give details of other expenses headwise and also state applicability ofTDS under chapter-XVIl of the IT Act 1961. vi) You have shown rent paid of Rs. 58.66 Lakh in the Profit & Loss account but no rent agreement is on records. So, you are requested to file rent agreement and also state applicability of TDS under chapter-XVII of the IT Act 1961 3. In view of the above, it is apparent that assessment in this case has been completed without verifying the ....
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....g for expanding the business. To substantiate his claims, he had filed (i) Comparative Chart for Sales Promotion Expenses for last 4 years (ii) List of cities where expansion to establish the business in new areas (iii) Sub-head wise, month-wise and area-wise expenses on sale promotion and marketing. It is seen from the assessment records that the same submissions had also been filed during the assessment proceedings u/s 143(3). However the A.O. had disallowed 5% of Rs. 4.89 Crs. expenses owing to not filing of any corroborative documents or details in support of the expenses. Hence no adverse findings are made in this issue. It appears from the past assessment records that no books of accounts were produced during the assessment procee....
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....itted a list of S/Creditors and confirmations from some of the S/Creditors during the assessment proceedings u/s 143(2). However no independent inquiry has been made by the AO by issuing notice u/s 133(6) to the S/Creditors. However the assessee has submitted the confirmations and ITR from the parties. In the absence of any independent inquiry, the order is erroneous as well as prejudicial to the interest of revenue. v. You have debited various other expenses in P & L account totally to Rs. 7.19 Crs. In this respect details of the same were not called for during the assessment proceeding and no sample verification made. In view of the above, you are required to give details of other expenses head-wise and also state applicability of TDS....
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....o above issues and then reframe the assessment order." [C] This present appeal has been filed by the assessee against the aforesaid impugned revision order dated 28.03.2017 of the Ld. Pr. CIT. At the time of hearing, Revenue was represented by Shri. S.S. Rana, CIT (DR). However, none was present from the assessee's side. In the absence of any representation from assessee's side, at the time of hearing before us, we heard the Ld. CIT (DR). The Ld. CIT (DR) relied upon the aforesaid impugned order dated 28.03.2017 of the Ld. Pr. CIT. He also relied on the precedents in the cases of (i) order dated 29.11.2017 of Hon'ble Supreme Court in the case of Denial Merchants Pvt. Ltd. vs. ITO (Appeal No. 2396/2017) ii. Malabar Industrial Co. Ltd. vs. ....