TaxTMI 
TaxTMI 
2022 (9) TMI 49
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....s no charge framed w. r. t. the directions passed in the order on the issue of "TDS and the Wages Expenses/ Development Expenses / Lease Rent etc." as stated in the body of Order, hence the order passed u/s 263 on this issue is invalid. 2.1 That Ld. PCIT-1, failed to appreciate that during assessment proceeding, in compliance to notice u/s 142(1) dated 10.08.2017, the assessee submitted detailed replies and produced supporting documents regarding payment of wages, Development Expenses and Lease Rent to the satisfaction of AO, hence it is neither erroneous nor prejudicial to the Interest of Revenue. 3. The Ld. PCIT-I, Lucknow erred on facts and in law in passing order u/s 263 on the issue of purchase of land without appreciating that during the course of assessment proceeding that in compliance to notice u/s 142(1) dated 10.08.2017, all the required details regarding purchase of land has been submitted / produced and the same has already been examined in the assessment proceeding. 3.1 That the Registry for purchase of land along with name and address of the seller who were agriculturist has been produced during assessment proceeding and after detailed exam....
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....nd has set aside the whole assessment order for making fresh assessment de novo. Learned counsel for the assessee submitted that Clause (c) to Explanation 1 of section 263 provides that when an appeal is pending before the CIT(A), the exercise of jurisdiction u/s 263 of the Act by CIT is not permitted. Thus it was argued that in the present case the Pr. CIT wrongly exercised jurisdiction u/s 263 by remitting back the matter to the assessing authority on 25/03/2013 while the appeal was decided by the learned CIT(A) on 05/06/2013 and thus it was argued that the order passed by learned Pr. CIT is void ab initio and be cancelled. Learned counsel for the assessee was questioned as to whether the appeal filed by the assessee before the learned CIT(A) related to the same issues on which learned Pr. CIT has passed the order u/s 263, the Learned counsel for the assessee replied in negative. In view of the negative reply by Learned counsel for the assessee, the Bench arrived at the conclusion that then in that case Clause 'C' to Explanation 1 of section 263 will not be applicable in the facts and circumstances of the present case as learned Pr. CIT has passed the order on those issues on whi....
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.... the assessee to provide details of purchase of land in a format and in response to the said query, the assessee, vide reply dated 01/09/2017, submitted the details of purchase of land in the format as required by the Assessing Officer and in this respect our attention was invited to pages 21 to 24 of the paper book where the copy of notice dated 10/08/2017 and copy of reply dated 01/09/2017, were placed. Our specific attention was invited to page 22 of the paper book where, vide question No. 3, the Assessing Officer had required the assessee to furnish complete details of purchase of land and the assessee, vide reply, placed at page 23, had submitted the complete details of purchase of land in the format as required by the Assessing Officer. Our attention was invited to page 26 of the paper book where detail of land purchased for financial year 2014-15 was placed and wherein date-wise purchase of different lands along with the stamp duty paid thereon and expenses incurred thereon was placed. Learned counsel for the assessee submitted that the total amount of these lands purchased at two projects Royal Awadh and Gomti Vihar were taken into the ledger account, a copy of which was pl....
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....fying himself, had correctly accepted the explanation of the assessee and therefore, the order of learned Pr. CIT on this ground is not sustainable. 3.2 Regarding another issue of site, wage and development expenses, Learned counsel for the assessee submitted that vide notice dated 10/08/2017, the Assessing Officer vide question at Sr.No. 6, required the assessee to explain the expenses and assessee, vide reply dated 07/03/2017, a copy of which was referred to pages 23 and 24 of the paper book, replied to the above queries and furnished the entire information and it was stated that copies of various ledger accounts has already been submitted vide letter dated 07/03/2017 and our attention was invited to paper book pages 37 and 38 where copy of such letter was placed. Our attention was further invited to the same order sheet where the Assessing Officer, vide order sheet entry dated 07/12/2017 has noted down that the assessee had filed bills and vouchers of land and land development etc. Learned counsel for the assessee submitted that out of expenses of Rs.67,58,935/-, Rs.65,112/- represented the lease rent expenses and the rest was on account of other expenses, the details of whic....
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....this amount, represented by sale deeds of pieces of land along with the stamp duty expenses and development expenses, as submitted to the Assessing Officer, is placed at page 26 of the paper book. The break-up of sale deeds, as reproduced by learned Pr. CIT in his order at page 1, tallies with the registry amount of land, as placed at page 26 of the paper book. The learned Pr. CIT, after noting down the amount of sale deeds, has arrived at a conclusion that the assessee had not filed sale deeds for an amount of Rs.1,15,48,625/-. While holding so he has overlooked the fact that there were development expenses to the tune of Rs.91,46,325/- and other expenses amounting to Rs.8,02,300/-. The break-up of such amount was submitted to learned Pr. CIT and was also submitted to the Assessing Officer during original assessment proceedings as is apparent from the reply of the assessee vide letter dated 01/09/2017, placed at pages 23 & 24 of the paper book. In this letter, the assessee, vide reply No. 3, had submitted to the Assessing Officer that details of purchase of land, as desired in the format, is enclosed and such format, submitted to the Assessing Officer, is placed at page 26 of the ....
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....er dated 01/09/2017, a copy of which is placed at pages 23 & 24, filed reply to the Assessing Officer on this query, which for the sake of completeness is reproduced below: "4. Lease rent expenses have been paid to the parties whom the sold area has been allotted but possession has not been given as the development work is partly pending. Lease rent has been paid to such persons and TDS has been deducted thereon as per applicable provisions. The details of monthwise expenses incurred in this respect is enclosed. 5. Copy of ledger account of site wages/development expenses has been submitted vide reply dated 07/03/2017." 4.2 From the above reply we find that assessee had already filed copy of ledger account of such wages/development expenses vide reply dated 07/03/2017, a copy of reply dated 07/03/2017 is placed at pages 37 & 38 of the paper book wherein the assessee, in view of notice dated 16/01/2017, had submitted the copy of account of expenses including site wages expenses/development expenses. We further note from the order sheet dated 07/12/2017 that Assessing Officer has noted that details of expenses relating to business promotion, lease rent, commissio....