2022 (11) TMI 301

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....ction u/s. 263 of the Act, particularly in the alight of reasons stated by him in the show cause notice and in the order passed u/s. 263 of the Act and hence the impugned order is bad in law. 2. The learned Principal Commissioner of Income Tax, Rajkot-3 erred in setting aside the assessment order framed u/s.143(3) of the Act by holding that assessment order passed by the AO was passed without proper examination, enquiry and verification in respect of issues mentioned in the show cause notice u/s.263 of the Act. 3. The learned Principal Commissioner of Income Tax, Rajkot-1, Rajkot failed to appreciate that the impugned issues were duly examined by the Assessing Officer by way of specific inquiries/notices and replies thereto, while fin....

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....nder Section 80IA(4) of the Act by making disallowance out of deduction of expenses claimed and bringing the correct income from other sources to tax. Thus, the PCIT set aside the said order and directed the Assessing Officer to pass a fresh Assessment Order. 4. The Ld. AR submitted that during the assessment proceedings under Section 143(3) the assessee was categorically asked vide show cause notice dated 24.05.2019 stating why common expenses in proportion to the turnover of the Windmill not be disallowed from the total expenses claimed for manufacturing unit. The Ld. AR further submitted that the assessee filed reply on 21.12.2019 before the Assessing Officer thereby stating that there is no employee cost associated to the Windmill Divi....