TaxTMI 
TaxTMI 
2022 (5) TMI 945
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....ent order and given a direction of passing, it fresh is illegal, bad in law and without jurisdiction. 3. That the notice by the Pr. CIT under Section 263 does not show that the Assessing Officer committed any error in passing the assessment order under Section 143(3). Therefore, the jurisdiction assumed by the Pr. CIT under Section 263 is illegal and without jurisdiction and is liable to be quashed. 4. That the Pr. CIT has failed to appreciate, that, the assessment order passed by the assessing officer after duly investigation, therefore, the allegation of Pr. CIT that the assessment order passed by the assessing officer is erroneous and prejudicial to the interest of revenue is highly arbitrary and against the facts of the case. 5. That the Pr. CIT has failed to appreciate that the assessee appellant has filed the confirmations of advance from customer as requisite by the assessing officer, thereafter, the assessing officer has taken a view, which is a possible view. Hence, the Pr. CIT has erred in law and on facts in setting aside the assessment to be redone afresh. 6. That the observation of the Pr. CIT are based on surmises and conjectures an....
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.... for the assessee reiterated the submissions as made in the written synopsis dated 16.3.2022. For the sake of clarity, the written synopsis of the assessee is reproduced as under: "That, the assessee is an Individual and enjoy Income from trading of Iron, Re-rolling Material under the proprietorship firm M/s V. P. and Company and Salary from M/s Durga Ispat and M/s Kama Metal and Alloys Pvt. Ltd. and Rent and Interest from Saving Bank Account, The M/s V.P. and Company is mainly purchased Iron, Re-rolling Scrap from Indian Railway through Auction and Indian Railway collect TCS @1% on Auction Amount. That, the case of the assessee has been picked up for the assessment scrutiny by issuing notice U/s 143(2) dated 27.07.2016 under the scheme of CASS, which was completed by the assessing officer and passed assessment order dated 31.05.2017 on Income of Rs. 17,82,584.00 against the Return Income of Rs. 13.45.220.00. The assessee has not filed any appeal against the said order. Subsequently, the Pr. CIT, Dehradun has issued notice U/s 263 dated 21.01.2020 and initiated the proceedings U/s 263 of the Income Tax Act, 1961 proposed to set-a-side the assessment proce....
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....s. (Page No.26 & 30 of the P/B) Thereafter, the assessing officer conducted the inquiry has issued the notice U/s 133(6) on pick and choose to the major parties, which is also duly complied by the said party, the copy of reply annexed (Page No. 28 & 29). Also, the assessee produce the complete books of accounts, which were check and verified by the assessing officer during the assessing officer. Before the Pr.CIT the assessee contended that the said liability has been re-paid in the subsequent year, the ledger were filed through banking channels, the copy of the ledger alongwith bank account for subsequent year is being enclosed for your ready reference, .(Kindly Refer page No. 4 to 9 of the Paperbook). It is pointed out that the assessment for the next assessment year A.Y. 2016-17 was completed U/s 143(3) of the Act, in which part payment was made. ISSUE-2 1) That, the Ld. Pr. CIT has doubted the introduction of fresh capital of Rs. 18,00,000.00 on 02.04.2014 in the show cause notice, without appreciating that the assessing officer has verified the transaction and adequate inquiry was conducted during the assessment proceedings, such as, the assessing....
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.... has filed, the ITR. Bank Account and confirmation from his wife Smt. Sushma Goel. The assessing officer has raised the query in the notice Issued U/s 142(1) dated 19.12.2016 (page No. 22 to 24, Kindly Refer Page No. 24 Point 9). The details of the said unsecured loans were provided by the assessee (page No. 34 - 35, Kindly Refer Page No. 34 Point 4) filed before the assessing officer. The amount is self explanatory, that, the assessee has received unsecured loans from his wife, therefore, the transaction is identifiable, genuine and creditworthy The same is also appreciated by the Pr.CIT during the hearing and no adverse comment was made in the impugned order by the Pr.CIT. In view of the facts and circumstances, the Pr.CIT has erred in initiating the proceedings U/s 263 and also in passing the impugned order and set-a-siding the assessment order being erroneous and prejudicial to the interest of revenue, is itself illegal, bad in law and without jurisdiction, on the following grounds: a) No Material on record that the assessment order passed is erroneous and prejudicial to the interest of revenue. That, the Pr.CIT failed to bring anything on re....
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....bad in law and without jurisdiction. It is therefore, humbly requested kindly allow the appeal and restore the assessment order by the assessing officer U/s 143(3) of the Act. 4. Per contra, learned CIT(DR) opposed the submissions and supported the order of learned Pr.CIT. Learned CIT(DR) further took us through the provisions of Section 263 of the Act and submitted that the learned Pr.CIT was justified in revising the order under the facts and circumstances of the present case that the Assessing officer grossly failed to examine the issues and verify the correctness of the claim of the assessee. He submitted that the Assessing Officer accepted the claim of the assessee in a mechanical manner. 5. We have heard rival submissions, perused the material on record and gone through the impugned order. The assessee is aggrieved by the action of the learned Pr.CIT for revising the assessment order passed u/s 143(3) of the Act dated 31.05.2017. It is the contention of the assessee that the action of initiation of proceedings u/s 263 is contrary to the settled principle of law. It is submitted on behalf of the assessee that the relevant explanations/ evidences were called by t....
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....mission filed by the counsel of the assessee is as under:- That the confirmed account copy from the party M/s Maa Kaila Foundries Private Limited was filed at the time of assessment. The outstanding liabiiity shown under the head "advance from customer" was 3,12,286/-. The assessee had sold goods worth 9,87,714/- on 23.04.2014 against which the party a bank RTGS of Rs. 13,00,000/- was made with specification for more goods tp be supplied. The liability of 3,12,286/- remained. This amount was subsequently paid through account payee cheques for Rs. 1,31,350/- on 23.10.2015 and 1,80,936/- on 14.03.2017. The account copy from out books from subsequent years is filed herewith. There is no discrepancy in the account and the confirmed account copy from the party is again filed. That the fresh capital introduced to the tune of Rs. 18,00,000/- on 02.04.2014 transferred from savings account with Union Bank number 513702010001423 to the business account was from the opening balance of Rs. 19,05,053/- in the assessed saving account. In this opening balance of Rs. 19,05,053/- as on 01.042014 the assessee had received transfer of Rs. 4,12,980/- from his salary account with m/s ....
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.... was taken on account of the failure of assessee for furnishing of documentary evidences in support of his claim. 7. However, the contention of the assessee is that on all the three issues the Assessing Officer has duly examined the called for evidences and all the evidences were supplied to the assessing authority. It is the say of the assessee that the Assessing Officer has made adequate inquiry and issued notice u/s 133(6) of the Act. The Assessing Officer has taken one of the possible views. Merely because the learned Pr.CIT has a different view that should not be the basis of initiation of proceedings u/s 263 of the Act. 8. There is no dispute with regard to the fact that learned Pr.CIT is empowered to exercise power under Section 263 of the Act, if twin conditions envisaged under the aforesaid provision are satisfied i.e. the order sought to be revised is erroneous and prejudicial to the interest of the Revenue. Therefore, it is to be examined whether the aforementioned requirement of law is satisfied in the present case. Section 263 of the Act has further undergone amendment vide Finance Act, 2015 whereby Explanation 2 is inserted. For the sake of clarity Explanation 2....