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TaxTMI 
TaxTMI 
TaxTMI 
2022 (6) TMI 734
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....'] under Section 263 of the Income Tax Act, 1961 [hereinafter referred to as 'the Act'] setting aside the Assessment Order, dated 29.06.2017, passed under Section 143(3) of the Act. 2. The present appeal is accompanied by application seeking condonation of delay of 332 days in filing the appeal. We note that the limitation of filing appeal expired during the lockdown imposed on account COVID- 19 pandemic. Therefore, the present appeal, though filed 332 days after the expiry of period of 60 days prescribed in Section 253(3) of the Act, is being treated as having been filed within limitation since it has been filed within the extended time period allowed by the Hon'ble Supreme Court vide orders, dated 23.03.2020 and 27.04.2021 passed in the ....
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....g satisfied with the explanations and submissions of the Appellant passed order, dated 20.03.2020, under Section 263 of the Act setting aside the Assessment Order by invoking the provisions of the Clause (a) of Explanation 2 to Section 263 of the Act on the ground that the Assessing Officer had failed to carry out necessary inquiry or verification before passing the Assessment Order. The relevant extract of the order passed by the PCIT is as under: "8. Non-verification of reconciliation and lack of proper enquiry by the Assessing Officer had resulted in completion of assessment u/s 143(3) dated 29.06.2017, which is erroneous and prejudicial to the interest of revenue. Therefore, there is no bar for the undersigned to assume jurisdiction u....
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....ied in this case. 12. Further, Explanation 2 to Section 263 was inserted by Finance Act 2015 with effect 01.04.2015 which is reproduced as under: "Explanation 2- For the purposes of this Section, it is hereby declared that an order passed by the Assessing shall be deemed to be erroneous insofar as it is prejudicial to the interests of the revenue, if, in the opinion of the Principal Commissioner or Commissioner: [1] The order is passed without making inquiries or verification which should have been made: [2] The order is passed without allowing any relief without inquiring into the claim; [3] The order has not been made in accordance with any order, direction or instruction issued by the Board under Section 19; or [4] The ....
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....order u/s 143(3) dated 29.06.2017 with a direction to examine in detail the above issues. The Assessing Officer shall pass an order afresh after giving due opportunity to the assessee in adherence to the principles of natural justice after obtaining necessary reconciliation and making further enquiries / verification." 5. Being aggrieved, the Appellant is before us in the present appeal. The Appellant has raised 9 grounds, all challenging exercise of power of revision by the PCIT under Section 263 of the Act, and supporting Assessment Order as being correct having been passed after making proper and adequate inquiry. Since all the grounds are inter-connected the same are being taken up together 6. The learned Authorized Representative of....
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....ring the assessment proceedings which were considered by the assessing officer. Though the Assessment Order is silent on the issues raised by the PCIT, it does not mean that the same issues were not inquired into or verified by the Assessing Officer. In conclusion, the Ld. Authorized Representative of the Appellant submitted that the PCIT had reviewed the order passed by the Assessing Officer in the garb of exercising powers of revision under Section 263 of the Act, and therefore, the order passed by the PCIT is liable to be set aside. 7. Per Contra, the Learned Departmental Representative submitted that the Assessment Order was erroneous in so far as it was prejudicial to the interest of Revenue and therefore, the PCIT was justified in se....
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....issues (i) whether sundry creditors are genuine, (b) whether contract receipts/fees have been correctly offered to tax and (iii) whether sales turnover/receipts has been correctly offered to tax. Thus, the Assessing Officer was required to carry out necessary verification and inquiries in relation to the above issues. The Appellant has contended that during the assessment proceedings the Appellant had filed necessary documents/confirmation and details reconciliation statement. We have examined the assessment order, the paper-book of the Appellant and copy letter date 11.06.2018 filed by the Appellant along with the annexures. The Assessing Officer has merely asked for age-wise details, and balance confirmation in relation to the sundry cred....