2020 (2) TMI 1101

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....e Tax Appellate Tribunal is justified in confirming the order passed by CIT u/s 263 thereby setting aside the order u/s 143(3) which is against the well settled law and out of the purview of Section 263? B. Whether the Ld. ITAT was justified in upholding the order passed by the CIT u/s 263 specifically when the original order u/s 143(3) was not at all erroneous order and reasonable, plausible and correct view was expressed by passing an order after taking into consideration reply, evidences and other relevant documents?" The relevant facts are that return filed for the assessment year 2014-15 declaring income of Rs. 16,36,340/- was processed under Section 143(1) of the Act. Subsequently, there being an information from the Inves....

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....ounsel have been placed on record. The books of a/c alongwith original vouchers and other documents were produced by the assessee, which were examined. 2. The case was discussed with the counsel for the assessee, and after discussion the following additions are made in the taxable income of the assessee on agreed basis subject to no penal action: i) An amount of Rs. 44,148/- on a/c of interest paid on car loan (being inadmissible expense) is added in the taxable income of the assessee. Total Addition - Rs. 44,148/- 3. The taxable income of the assessee is recomputed is as under: Income returned by the assessee Rs. 16,36,340/- ADD:- Addition as discussed in para 2 above: Rs. 44,1....

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....ct was added by Finance Act, 2015 w.e.f. 1.6.2015. As per the added explanation, in following four situations, the order of the Assessing Officer shall be deemed to be erroneous: "(a) the order is passed without making inquiries or verification which should have been made; (b) the order is passed allowing any relief without inquiring into the claim; (c) the order has not been made in accordance with any order, direction or instruction issued by the Board under section 119; or (d) the order has not been passed in accordance with any decision which is prejudicial to the assessee, rendered by the jurisdictional High Court or Supreme Court in the case of the assessee or any other person." In the present ca....