TaxTMI 
TaxTMI 
2022 (11) TMI 612
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....r has passed a scrutiny assessment order u/s. 143(3) after making a conscious application of mind and keeping in mind the various jurisdictional pronouncements and therefore the order passed by AO is neither erroneous nor prejudicial to the interest of revenue. (b) The order u/s 263 passed by the Pr. CIT is illegal, bad in law and without jurisdiction as detailed replies filed before the Pr. CIT, in response to the notice u/s 263, have not been considered while passing the final order. Hence the order u/s 263 is liable to be quashed. (c) That the exercise of jurisdiction by Pr. CIT u/s 263 is bad in law and without any basis as the same has been done on mere assumption and therefore, as such the assessment order is not erroneous and there is no prejudice to the interest of Revenue. (d)That the Pr. CIT has erred on facts and in law in not appreciating that the reply in specific reference to various heads of expenditure and TDS was enquired during the assessment proceedings and also confirmed by the Pr. CIT while issuing notice u/s 263 of the Act, (e) That the Pr. CIT has erred on facts and in law in assuming jurisdiction u/s 263 when the assessmen....
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....sallowed which was not done while passing the assessment order u/s. 143(3) of the Act. 3.1 In the proceedings u/s 263 of the Act, the counsel for the assessee submitted that the assessee had deducted TDS on all the expenses amounting to Rs. 93,49,410/-. He submitted that at the time of online submission, the assessee filed the ledger, though without a detailed narration as the online size of filing of the submission was a constraint. Further, regarding the labour charges paid to S.V. Construction amounting to Rs. 48,72,350/-, the assessee submitted that the underground water tank is in relation to plots sold at Dholera where there is salty water and in order to provide sweet water to the plot owners, construction of underground water tank is a necessary requirement. So far as the construction of club house is concerned, it is a part of the scheme itself and it is a common facility provided to the plot holders. Further, the assessee submitted that the assessee has capitalized the aforesaid expenses incurred for the project and shown as WIP which is mentioned in the financial statements and return of income as well. 4. The Pr. CIT however rejected the assessee's submission and ....
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....d quarter wise and nature of payment-wise and person-wise with supporting corroborative documentary evidences which can substantiate the alleged claim of the assessee. In absence of the details regarding the deductee wise details, it is not possible to verify and examine the veracity of the claim of the assessee that TDS has been deducted and deposited into the government account as per the provisions of the law. d) On verification of 3CD report of Tax Auditor, it is noticed that the column no.21(b) pertaining to details of amount admissible u/s 40(a)(ia) is provided but no information has been given in that column. e) Basically, the assessee has failed to co-relate each payment with details of TDS actually made or not and should provide detail break-up of challans to ascertain that due TDS was made by the assessee and the same was deposited in Government account. On perusal of the 360 profile of the assessee, it is noted that the assessee has only deposited tax to the tune of Rs. 85,471/- vide challan No. 19019 dated 31.12.2019. Relevant portion is a under : f) AY Tax Depo sited Major Head Minor Head ....
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....le in the light of facts discussed above, the then AO neither collected/obtained the relevant details nor raised relevant queries so obviously there was no application of mind on his part. In this case, 1 am of the considered opinion that the impugned order was passed without making necessary enquiries / verification which should have been made on the above issues. Besides this, it is apparent from record that the then Assessing Officer passed the order allowing relief on the issues discussed above which admittedly erroneously claimed by the assessee. Thus, this case is covered by clause (a) & (b) of Explanation 2 to section 263 reproduced above." 5. The assessee is in appeal before us against the above order passed by Pr. CIT u/s. 263. The counsel for the assessee submitted that as many as 8 hearings took place before the ld. Assessing Officer during the course of assessment proceedings and the Assessing Officer has taken cognizance of all the issues which are the subject matter of proceedings u/s. order passed u/s 263 of the Act of the Act. The counsel for the assessee drew our attention to pages 10 to 21 of the paper book with the ledger copy of all the relevant expenses and ....
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.... the assessee submitted that all the issues which were raised u/s. 263 proceedings were already answered by the assessee before the ld. Assessing Officer vide its submission dated 4th Nov, 2019 and 25th Nov, 2019. Therefore, the Assessing Officer has duly applied its mind and taken a conscious decision in respect of all issues which were subject matter of 263 proceedings. 6. In response, the ld. Departmental Representative relied upon the observations made by Pr. CIT order u/s. 263 of the Act. 7. We have heard the rival contentions and perused the material on record. On going through the submissions and documents placed before us, we are of the considered view that that issues which were raised by the Pr. CIT were examined by the ld. Assessing Officer as well during the course of assessment proceedings. Regarding the issue of non-deduction of TDS, the assessee has placed detailed evidences that TDS has already been deducted in respect of all payments, however, the Pr. CIT was unable to appreciate the factual and legal submission placed before him. Further, regarding expenses on account of labour charges in connection with the construction of underground water tank and club ho....