TaxTMI 
TaxTMI 
2024 (6) TMI 275
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....he following point issues to be decided afresh by A.O for making enquiries/investigation/re-examined. S.No Head of Account Amount 1 Dividend Equilisation fund 15000000 2 Computer Fund 40000000 3 Furniture and Fixtures Fund 30000000 4 Development Fund 5000000 5 Loan Inbalance fund 30000000 6 Risk Fund provisions 10000000 7 One Time Settlement Provision 4700000 8 President Rahat Fund 1000000 Total 135700000 I LAN networking and Electric Expenses 2719790 Total 138419790 4. On the facts and the circumstances of the case, the Hon'ble Commissioner of Income Tax-II erred in directing the A.O in make enquire or investigation about the allowability of the expenses as well as nature all of above provision Rs. 138419798/- debited to profit and loss account. 5. On the facts and the circumstances of the case, the Hon'ble Commissioner of Income Tax-II erred in holding that order dt. 06.01.2016 for A.Y 2014-15 is erroneous while there was no such order for the A.Y 2014-15. Thus the order passed without booking to the relevant year record as well as earlier year assessment in which all pointed out c....
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.... the Ld. PCIT has concluded that the order passed by the Ld. A.O without conducting due enquiry on these issues is erroneous as well as prejudicial to the interest of revenue. Accordingly the order of the Ld. A.O was set aside with the direction to reexamine all the points as taken up in the proceedings u/s 263 of the Income Tax Act after making necessary enquiry as well as investigation. Aggrieved by the impugned order assessee has filed an appeal before us. 3. Before the Tribunal Ld. AR has submitted that the Ld. A.O has issued show cause notice u/s 1421) of the Income Tax Act dated 12.10.2015 which was duly replied by the assessee with supporting evidences vide reply dated 08.12.2015. He has pointed out that the assessee has explained each and every point in its reply which were taken up by the Ld. PCIT in the show cause notice issued u/s 263 of the Income Tax Act. Thus he has contended that only after the Ld. A.O was satisfied with the reply of the assessee on the claim of provisions of section 36(i)(viii) was accepted by the Ld. A.O. When the Ld. A.O has conducted a due enquiry and accepted the claim of the assessee then it is not necessary that the Ld. A.O should give an ela....
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....impugned order of Ld. PCIT is not sustainable and the same is liable to be set aside/quashed. 4. On the other hand Ld. DR has submitted that the order of the Ld. A.O is completely silent on any of the issues as taken up by Pr. CIT in the proceedings u/s 263 of the Income Tax Act. The Ld. A.O has accepted the return income without making any enquiry about the allowability of provisions claimed as deduction by the assessee. This is a case of complete lack of enquiry on the part of Ld. A.O. He has relied upon the impugned order of the Ld. PCIT. 5. We have considered the rival submissions as well as relevant material on record. The Ld. A.O has passed scrutiny assessment u/s 143(3) of the Income Tax Act dated 06.01.2016 as under:- ASSESSMENT ORDER Return of income, in this case was filed on 30.09.2013 through e- filing vide acknowledgement No. 807652231300913 showing net Income of Rs. 14,76,12,320/-. The assessee engaged in the banking & related services and Insurance commission. The return filed has been processed u/s 143(1) of the I.T. Act, 1961. The case was selected for scrutiny and statutory notice u/s 143(2) was issued on 02.09.2014 from ITO-5(3), Indore and the same were sen....
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....ount 1 Dividend Equilisation fund 15000000 2 Computer Fund 40000000 3 Furniture and Fixtures Fund 30000000 4 Development Fund 5000000 5 Loan Inbalance fund 30000000 6 Risk Fund provisions 10000000 7 One Time Settlement Provision 4700000 8 President Rahat Fund 1000000 Total 135700000 8. Thus it is clear that as many as 8 items of claim of provisions were questioned by the Ld. PCIT in the show cause notice about the allowability of same u/s 37 of the Act. Though the assessee has referred to its reply dated 08.12.2015 however, the assessment order is completely silent about any such reply. Accordingly Bench directed the Ld. A.O to produce the assessment record and the Ld. DR has filed the report of the Ld. A.O dated 14.05.2024 thereby the Ld. A.O has stated that due to transfer and merger of the jurisdiction of ACIT, Khadwa with ACIT 4(1), Indore the assessment record shifted from Khandwa to Indore is not traceable despite the efforts made at Indore as well as Khandwa offices. Therefore, it is not clear whether the reply as referred by the Ld. AR was actually available with the Ld. Assessing Officer or not as there is no acknowledgem....