2023 (11) TMI 445

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....assing order u/sec. 263 of the Income Tax Act, 1961 (for short, 'the Act'). 3. The relevant facts of the case are that the assessee is in the business of car rental services, filed its return of income for the year under consideration on 30/03/2016 declaring total income of Rs. 3,43,540/-. The order of assessment was framed u/sec. 143(3) of the Act on 28/11/2016 accepting the returned income of the assessee. Subsequent to the assessment, it was observed by the ld. PCIT that during the year, the assessee had a turnover of Rs. 1,35,48,457/- and as per sec. 44AB, the assessee was required to get its accounts audited, which it had not done. Further, it was also observed that assessee placed reliance on the provisions of sec. 44AD to es....

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.... the Department on the same facts and circumstances to the assessee. Therefore, this is a case of possible view and when two views are possible, it is not correct for the ld. PCIT to invoke revisionary jurisdiction holding the assessment to be erroneous and prejudicial to the interest of the Revenue. Ld.AR further submitted that since they have not audited the books of account, the most appropriate provision was sec.44AD have been applied and, therefore, they have estimated the profit @8% of its total receipts. 5. Per contra, ld.DR vehemently opposed the contention of the ld.AR by submitting that admittedly the turnover of the assessee during the year was more than Rs. 1 crore and as per sec.44AB, it was mandatory to get accounts audited w....