AI Drafter 
TaxTMI 
TaxTMI 
2022 (11) TMI 310
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.... Guntur dated 08.02.2019 for the Assessment Year (A.Y.) 2012-13 and 2014-15. Since the grounds raised in these appeals are identical, these appeals are clubbed, heard together and a common order is being passed for the sake of convenience as under. Grounds of the case are extracted from I.T.A.No.135/Viz/2019. 2. The assessee raised the following grounds of appeal : 1. In the facts of the case and as per law the order passed by the Ld.Pr.CIT Rajahmundry is not correct. 2. The order of the Ld.Pr.CIT is contradictory in the sense that at paragraph 8.3 of his order he is directing the Assessing Officer to disallow the amount of Rs.1,21,33,000/- on the other hand at paragraph 11 he is directing the Assessing Officer to redo ....
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....towards purchase of land in violation of the provisions of sec.40A(3) of the Act. The Ld.Pr.CIT observed that the order passed by the AO is erroneous and prejudicial to the interest of the revenue and the entire amount of Rs.1,21,33,000/- has to be disallowed and brought to tax u/s 40A(3) of the Act for the A.Y.2012-13 as the said issue was not considered in the assessment order passed u/s 143(3) r.w.s. 153C of the Act dated 29.12.2016. Hence, issued a show cause notice dated 10.01.2019 to the assessee as to why the assessment order passed on 29.12.2016 should not be revised u/s 263 of the Act. The assessee filed written submissions before the Ld.Pr.CIT and submitted that the payments were made in cash due to business exigencies and circums....
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....or the A.Y.2012-13. 4. Aggrieved by the order of the Ld.Pr.CIT, the assessee preferred an appeal before the Tribunal and filed a letter to admit the additional grounds of appeal raised as under : "On the facts and in the circumstances of the case and in law the assumption of jurisdiction by the Ld.AO under section 153C is bad in law. Therefore, the order passed by him under section 153C r.w.s 143(3) is null and void being without jurisdiction, consequently the order under section 263 passed by the Pr.Commissioner of Income Tax directing the Assessing Officer to revise an invalid order is also ab initio void." The Ld.AR submitted that the Ld.AO has sent a proposal to the Ld.Pr.CIT to revise the order u/s 263 of the Act passed ....
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....ssment and directing a fresh assessment; or (ii) an order modifying the order under section 92CA; or (iii) an order cancelling the order under section 92CA and directing a fresh order under the said section]. Explanation 1.-For the removal of doubts, it is hereby declared that, for the purposes of this sub-section,- (a) an order passed on or before or after the 1st day of June, 1988] by the Assessing Officer 91[or the Transfer Pricing Officer, as the case may be,] shall include- (i) an order of assessment made by the Assistant Commissioner or Deputy Commissioner or the Income-tax Officer on the basis of the directions issued by the Joint Commissioner under section 144A; (ii) an order mad....
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.... in so far as it is prejudicial to the interests of the revenue, if, in the opinion of the Principal 95[Chief Commissioner or Chief Commissioner or Principal] Commissioner or Commissioner,- (a) the order is passed without making inquiries or verification which should have been made; (b) the order is passed allowing any relief without inquiring into the claim; (c) the order has not been made in accordance with any order, direction or instruction issued by the Board under section 119; or (d) the order has not been passed in accordance with any decision which is prejudicial to the assessee, rendered by the jurisdictional High Court or Supreme Court in the case of the assessee or any other person. 96....