2024 (4) TMI 139

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....o as 'the Act') by the ACIT, Circle-1(2)(1), Dehradun (hereinafter referred as the Ld. AO). 2. The assessee is a partnership firm and the case of the assessee was selected for complete scrutiny through CASS for the reasons, "large deductions claimed u/s 80IA/ 80IAC/80IB/ 80IC/ 80IBA/ 80ID/ 80IE/10A/ 10AA." The ld. PCIT examined the assessment record and concluded that the AO has not passed the assessment order with due diligence. Accordingly, the assessee was put to notice as follows:- "2.1 In your case assessment order was passed on 09/12/2019 as per the provisions of section 143 (3) of the Income Tax Act at returned income of Rs. 4,99,58,100/-. On going through the assessment record, it is found that in your case, you had claimed deduc....

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....refore renders the assessment order u/s 143(3) dated 09/12/2019 erroneous in so far as it is prejudicial to the interest of revenue in light of clause (a) and (b) to Explanation 2 of section 263 of the Income Tax Act, 1961. 4. In view of the above, I am of the opinion that the assessment order dated 09.12.2019 passed in your case is erroneous in so far as it is prejudicial to the interest of revenue and deserves to be revised. Therefore, you are required to show cause as to why the assessment order dated 09.12.2019 for AY 2017-18 should not be revised u/s 263 of the Income Tax Act, 1961." 3. The assessee responded to the same submitting that the assessee had derived income from two units and the income from the eligible unit established ....

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....That the issue of deduction u/s 80IC, as claimed by the assessee, had not been examined and investigated by the assessing officer in the manner as required. * That the assessment proceedings completed without taking cognizance of the issues for which the case of the assessee was selected for scrutiny, is erroneous and also prejudicial to the interest of the revenue. 4. In any view of the matter and in any case, order passed under section 263 is bad in law and against the facts and circumstances of the case & is barred by limitation. 5. That the appellant craves the leave to add, amend, modify, delete any of the grounds of appeal before or at the time of hearing and all the above grounds are without prejudice to each other." 4. Heard ....

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....0 of the paper book was issued. The record shows that on 17.10.2019, again, the ld. AO has sought explanation with regard to large deductions claimed u/s 80IA which was responded by letter dated 23.10.2019 available at page 27 of the paper book wherein the assessee had filed the following information with relevant documents:- "1. Books of accounts and supporting bills and vouchers will be produced at the time of manual hearing, you are requested to please provide us the date in the first week of November 2019. 2. Regarding expenses debited in P & L A/c they are fully supported with the proper bills and vouchers and the same will be produced alongwith the ledger accounts at the time of manual hearing as desired at point no. 1. 3. Copie....