TaxTMI 
TaxTMI 
2021 (3) TMI 1331
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....ne the delay. The assessee filed before us an affidavit and reasons for delay has been explained in the said affidavit. We have heard both the parties on this preliminary issue. Having regard to the reasons given in the application for condonation of delay, we are of the considered opinion that assessee was under a bona fide belief that the impugned order of Pr. CIT was not appealable before this Tribunal since they were not advised by their Tax Consultants about this legal right. Later on, when a Senior Chartered Accountant advised them to file an appeal, the assessee immediately took steps to file the appeals. Therefore, the delay caused. We note that delay in filing the appeal was because of the wrong advice of the Tax Professional for which assessee cannot be penalized. For the ends of justice, we condone the delay and admit the appeal for hearing. 4. The relevant material facts, as culled out from the material on record, are as follows. The assessee before us is an individual and filed his return of income on 31.10.2007, declaring total income to the tune of Rs. 9,14,884/-. The assessee`s case was re-opened under section 148 of the Income Tax Act, 1961 and the assessment unde....
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....hich the AO failed to verify. Almost complete absence of any inquiry on this issue makes the order erroneous as well as prejudicial to the interest of revenue. 5. You are, therefore, required to show-cause as to why the said assessment order be not revised by invoking the provisions of 263 of I.T. Act, 1961. The hearing in your case is being fixed on 06.03.2017 at 1.00 P.M. Please note that the required details should be submitted after numbering the documents enclosed and indexing the same in the forwarding/cove ring letter. 6. Please note that the required details should be submitted after numbering the documents enclosed and indexing the same in the forwarding /covering letter. You can attend the hearings either personally or through your duly authorized representative or can file written submissions on or before the stipulated date and time of hearing. [Satbir Singh] Pr. Commissioner of Income tax, Valsad" 6. In response to the show cause notice of the Ld. PCIT under section 263 of the Act, the assessee attended and filed letter for adjournment. Since, the matter involved getting barred by limitation of time as on 31.03.2017, therefore, the hearing was adjourned to 10.0....
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....evity. 10. We have heard both the parties and carefully gone through the submissions put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the facts of the case including the findings of the ld. PCIT and other material brought on record. We note that during the reassessment proceedings, the Assessing Officer has asked the assessee to submit the details of cash deposit of Rs. 16,00,000/-,vide his letter dated 07.10.2014 which is placed at paper book page no.12 and the same is reproduced below for ready reference: "To, Shri Pramod Keshrichand Shah, date: 07.10.2014 Jain Street, Nani Daman Sir, Sub : Submission of details/information u/s 142(1) of the Income Tax Act, 1961 - for the Assessment Year 2007-08 - Reg. Please refer to the above. 2. In connection with the assessment proceedings for the A.Yr. 2007-08, as questionnaire, was issued to your on the above address on 21.04.2014 requesting you to attend this office alon....
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....lopment Credit Bank A/c No.04410100002457 of Rs. 16,00,000/-. We are already enclosed Bank Statement for your honour ready reference. We enclose herewith the copy of Cash Account for your honour ready reference. 2. We enclose herewith the- copy of Balance Sheet along with computation of total income for A. Y. 2006-2007 your honour ready reference. We hope these would meet the requirements of your honour. However, we shall be glad to furnish any other information on being heard by your honour. Thanking You, Sincerely Yours, For, KAKARIA AND ASSOCIATES, CHARTERED ACCOUNTANTS," 12. Therefore, we note that during the reassessment proceedings, the assessee submitted the details and the explanations of Rs. 16,00,000/- cash deposited in the bank account. Just because the Assessing Officer did not bring this figure on assessment order and has passed order in brief, does not mean that assessing officer has not examined the cash deposit. The assessing officer has applied his mind and passed the reassessment order under section 143(3) r.w.s.147 of the Income Tax Act. Hence, order passed by the Assessing Officer should not be erroneous. The assessee also submitted the details of cash....
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....y the Commissioner of Income-tax. Tribunal held and observed as under:- "6. We have carefully considered the rival submissions and have also perused the material on record as also the paper book filed before us. We find from the assessment order itself that as stated in para (4) thereof the A.O has clearly stated that during the year there were sales of flats of Rs. 5,20,000/= on which a certain profit was declared. We find from the order that the assessee is a civil contractor and what is sold as flat is fixed assets of the firm. From the submissions to the I.T.O and to the CIT it is noted that no business activity was made during the year. We also find that the ITO has clearly stated in para (5) that subject to above remarks and based upon the information produced before the undersigned, the total income of the assessee is computed as under. It is further noted that several replies were filed both during assessment proceedings and during the inquiry by the A.O during revision proceedings. From the replies on issues referred to in the show cause notice, it is seen that in respect of the major item being cash credits, the required details in support thereof were furnished and the....
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....ne of the possible courses available in the scheme of the I.T. Act which results in any loss of revenue or when two views are possible and the A.O. adopts one of them with which the C.I.T. does not agree, then it would not be an order prejudicial to the interest of revenue for invoking the jurisdiction u/s. 263 of the Act. We note that the Ld. Pr. C.I.T. by invoking his jurisdiction u/s. 263 of the Act is giving another opportunity to the Ld. Assessing Officer, which is not permissible. Hon'ble Bombay High Court in the case of Ranka Jewellers vs. Addl. CIT (328 ITR 148) relying on the decisions of Hon'ble Supreme Court in the cases of Malabar Industrial Co. Ltd. vs. CIT (supra) and CIT vs. Max India Ltd. [(2007) 295 ITR 282 (SC)], has held that once the issue was considered by the Assessing Officer, the remedy of the revenue could not lie in invoking of the jurisdiction u/s. 263 of the Act. Therefore, the order of the Ld. PCIT was definitely outside the purview of section 263 of the Act. As noted above, the exercise aimed at ascertaining the correct income of the assessee has been fulfilled by the Ld. Assessing Officer by exercising his quasi-judicial functions vis-a-vis passing t....