TaxTMI 
TaxTMI 
2022 (8) TMI 1359
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....s of the case, Learned Pr. Commissioner of Income Tax, Jalandhar-1 ('Ld. CIT') has grossly erred in law in passing order u/s 263 of the Act even though the assessment order u/s 143(3) of the Act dated 30.11.2016 passed by the Assessing Officer was neither erroneous nor prejudicial to interest of revenue. 3. That order u/s 263 of the Act passed by the Learned Commissioner of Income Tax, Jalandhar-1 ('Ld. CIT') is illegal and bad in law since proceedings initiated u/s 154/155 of the Act on the issue of taxability of repair and maintenance of machinery expenses Rs. 93,69,787/-, repair and maintenance of building expenses Rs. 12,88,783/- and interest on deposits Rs. 20,33,441/- were filed by the Assessing Officer which clearly implies that Assessing Officer has applied his mind not only at the time of assessment proceedings but also during rectification proceedings u/s 154/155 of the Act warranting no action u/s 263 of the Act. 4. That on the facts and circumstances of the case, Learned Pr. Commissioner of Income Tax, Jalandhar-1 ('Ld. CIT') has grossly erred in law in passing order u/s 263 of the Act, when the assessment has already been concluded by the Assessing Of....
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....urinder Mahajan & Associates the present counsel, on 06.01.2020 who has filed the appeal before the Tribunal with the application of condonation of delay with the support of an affidavit and prayer to condone the delay due to good and sufficient reasons of the death of the regular counsel of the appellant, Sh. Ravi D. Sharma with a request to condone the delay and allow the matter to be adjudicated on merits. 4.1 The ld. DR has objected to the condonation application filed by the assessee. He argued that the appellant assessee is a business concern which is looked after by group of employees and battery of lawyers having knowledge of tax matters however, the DR failed to submit in rebuttal that what prejudice would be caused to the department by condoning the delay on account of mistaken belief, in view of the death of the assessee's regular Chartered Accountant, Sh. Ravi D. Sharma. 5. Under the similar circumstances, ITAT Kolkata Bench in the case of Sahabuddin Quadiri v. DCIT in ITA No. 1617/KOL/2016 condoned the delay of 409 days in filing appeal against order u/s 263 of the Act by observation as under: "We are of the considered opinion that assessee was under a b....
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....iled to make any enquiry and make verifications of the claim of the assessee in respect of the aforesaid current repairs and maintenance of machinery, current repairs and maintenance of building and deduction of the interest out of the business income of the assessee. Accordingly, the PCIT concluded that the AO passed an assessment order u/s 143(3) of the Act without making required enquiries and verification that rendered the assessment order to be erroneous and prejudicial to the interest of the Revenue and accordingly, he set aside the case to the file of the AO for fresh assessment. 9. The counsel for the assessee has submitted that the assessment was framed after due verification of the claim made in the profit and loss account by the appellant assessee by way of queries raised in respect of expenses claimed on account of current repairs and maintenance of machinery, current repairs and maintenance of building and the interest (APB pg. no. 8 to 65) by way of issuing a notice u/s 142(1) of the Act. The counsel has argued that based on audit objection, vide audit memo CHD/IT/001/2017-18 dated 24.01.2018 proceedings u/s 154 of the Act were initiated, by way of notice dated 08.....
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.... the AO, even in the assessment order passed u/s 143(3) r.w.s. 263 of the Act on 26.12.2019, has allowed 30% of machinery repair and maintenance expenses as revenue expenses and balance 70% were treated as capital expenses. The counsel made a reference to the provisions of section 263 of the Act and contended that jurisdiction therein cannot be exercised if the CIT finds that order of the AO was erroneous and prejudicial to the interest of the Revenue, because merely a audit objection or a different view could be taken; are not enough to show that the order of the AO was erroneous or prejudicial to the interest of the Revenue. 13. In the present case, the assessee's claimed expenses under the head current repairs and maintenance of machinery, current repairs and maintenance of building and interest claimed on creditors was accounted for in the ledger, produced for verification during the course of scrutiny assessment proceedings u/s 143(3) and 154 before the AO and duly stands verified to his satisfaction. The ld. PCIT has merely stated that the AO has failed to make necessary enquiry and investigation, however he has not specified the particular head of the account or the expen....
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.... whether the surrender made by assessee can be considered as business income or can be taxed as deemed income under section 69A of the Act. In this respect, let us examine the surrender letter which is placed at paper book page 46. From the above surrender letter it is apparent that assessee had made a surrender as additional income over and above the normal profits of the concern and since the income has been declared as business income, the same has to be assessed under the head business income and not as deemed income under the provisions of section 69A. The Assessing Officer had taken a plausible view while accepting the contention of the assessee. As regards the enquiries during the assessment proceedings, we find that Assessing Officer vide letter dated 15.07.2011 placed at paper book page 35 raised this issue vide para-11. The assessee filed a detailed reply under the heading justification of taxable income wherein it explained as to why the taxable income had decreased as compared to surrendered income. As per paper book page-39, the main reason for decrease in taxable profits was due to increase in depreciation and increase in bank interest. The Assessing Officer after con....