2021 (2) TMI 1113

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....ssment Year 2008-09. The appeal was admitted by a Bench of this Court vide order dated 06.12.2017 on the following substantial questions of law. "(i) Whether in law, when the AO had taken one of the possible views, was it correct for the Tribunal to hold that assumption of jurisdiction under Section 263 was correct? (ii) Whether, when the appellant though made adhoc provision towards expenses on account of technical/consultancy services for engineering services did not claim in the Profit & Loss Account as deduction and claimed only the expenditure on which TDS was made which was allowed by the AO, the said order of the AO can be said to be erroneous for assuming jurisdiction under Section 263 of the Act? (iii) Whether in law, the Tri....

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.... which included a sum of Rs. 2,36,07,661/- for which no TDS was effected that was required to be disallowed under Section 40(a)(ia) of the Act. The assessee filed detailed objections raising the issue of jurisdiction as well as on merits and contended that there was no error much less any error prejudicial to the interest of the revenue and assumption of the jurisdiction under Section 263 of the Act was itself erroneous. The Commissioner of Income Tax (Appeals) however, vide order dated 19.03.2015 rejected the plea of the assessee and concluded the proceedings and remitted the matter to the assessing officer to decide the matter afresh and in accordance with law. Being aggrieved, the assessee filed an appeal before the Tribunal. The Tribuna....

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....submissions made by learned counsel for the parties and have perused the record. Before proceeding further, it is apposite to take note of the relevant extract of Section 263 of the Act, which reads as under: 263. Revision of orders prejudicial to revenue (1) The Commissioner may call for and examine the record of any proceeding under this Act, and if he considers that any order passed therein by the Assessing Officer is erroneous in so far as it is prejudicial to the interests of the revenue, he, may, after 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 t....

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....nt extract of the order passed by the Tribunal which reads as under: "4.3 The only issue that arises for our consideration in the present appeal is whether the Id.CIT(LTU) was justified in assuming jurisdiction under the provisions of sec.263 of the Act. The only ground on which the Id.CIT(LTU) exercised the power of revision u/s 263 was that the claim of allowance of Rs. 2,36,07,661/- under the provisions of sec. 40(a)(ia) was not examined by the AO during the course of assessment proceedings." 10. However, it is the claim of the assesee that the assessee has not claimed the benefit of the disallowance under Section 40(a)(ia) of the Act for the Assessment Year in question ie., 2008-09 and the same was claimed in the previous Assessment ....