TaxTMI 
TaxTMI 
2023 (1) TMI 853
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....g sanitary and electrical fittings. The assessee is also a partner in two partnership firms doing similar business. The return filed by the assessee came to be processed and the assessment came to be completed u/s.143(3) of the Act on 10.12.2019, wherein certain disallowances have been made. It was submitted that this assessment order was the subject matter of revision by the ld. Pr.CIT, Bhubaneswar-1 u/s.263 of the Act. In the revisionary proceedings ld. Pr.CIT had proposed the following the issues:- i) the interest on the TDS was alleged to have not been disallowed; ii) the details of liability for expenses and the provision for salary had not been examined by the AO; iii) the net profit from the business of the....
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....tted that consequently, the said proposal by the ld. Pr.CIT is liable to be quashed. 4. In reply, ld. CIT-DR vehemently supported the order of the ld. Pr.CIT. 5. We have considered the rival submissions. As it is noticed that the interest of the TDS has already been added back by the assessee in its computation of total income, the revision proceedings in respect of this issue stands quashed. 6. Coming to the next issue being the details of liability for expenses and the provision for salary had not been examined by the AO, ld. AR submitted that the said expenses were in the nature of VAT payable interest on VAT and the entry tax payable and such other professional charge expenses. It was the submission that the AO had issued notic....
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....mently supported the order of the ld. Pr.CIT. 11. We have considered the rival submissions. As it is noticed that the said provision is not in respect of the salary but it is in respect of the income tax and it is carried forward from the earlier years, admittedly, this issue is not one which can fall within the purview of revision u/s.263 of the Act and consequently the revisionary proceedings on this issue stands quashed. 12. In regard to the next issue of net profit from the electrical and sanitary business, which appeared to be low, it was submitted by the ld. AR that in the questionnaire issued by the AO in question No.12, the purchase, sales expenses had all been looked into. It was found that the said expenses were reasonable. ....
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....age 33 of the paper book, which is a copy of the profit and loss account wherein the software expenses have been shown at Rs.23,750/-. It was the submission that these expenses were in relation to renewal fees for the tally software. It was the submission that this is revenue in nature and this has also been looked into by the AO in reply to the question No.12 of the query. 16. In reply, ld. CIT-DR vehemently supported the order of the ld. Pr.CIT. 17. We have considered the rival submissions. As it is noticed that the issue has already been considered by the AO in reply to the query No.12 and also as it is noticed that the expenses in relation to the renewal of the tally software license, the same is purely revenue in nature also. The....
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....he course of assessment. Just because there is no specific finding of the AO in respect of each of the issues, does not mean that the issue has not been examined by the AO. In fact the disallowance under the head telephone & Internet charges, are the expenses under selling, distribution and administration overheads. Thus, it must be presumed that the AO has examined each of the expenses mentioned therein. This being so, we are of the view that the revision proceedings on this issue is unsubstantiated and consequently the same is quashed. 21. The next issue is in regard to the propriety of claim of interest under house property, it was submitted by the ld. AR that this amount was specifically shown in the computation of total income at pa....
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....m is also shown, profit of the partnership is also shown. It was submitted that all these have been considered by the AO when he passed the assessment order u/s.143(3) of the Act. It was submitted that all the details being available before the AO and being part of the income of the assessee, therefore, ld.AR submitted that the revisionary proceedings on this issue is liable to be quashed. 25. In reply, ld. CIT-DR vehemently supported the order of the ld. Pr.CIT(A). 26. We have considered the rival submissions. It is noticed that when passing the assessment order u/s.143(3) of the Act, the AO has adopted the total income as per the return of income. This is supported by the computation of total income wherein the interest on the capit....