TaxTMI 
TaxTMI 
2021 (9) TMI 1560
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....by the assessment order passed by the Assessing Officer (A.O.) dated 21.12.2019 under section 143(3) of the Act concerning Assessment Year (A.Y.) 2017-18 was sought to be set aside for reframing the assessment in terms of supervisory jurisdiction. 2. As per its grounds of appeal, the assessee has challenged the revisional action of the PCIT whereby the Assessing Officer (A.O.) was directed to pass the assessment order denovo after making enquiries on the points set out in the notice which has already examined and considered during the original assessment proceedings concerning A.Y. 2017-18. The assessee has challenged the assumption of jurisdiction by the PCIT under section 263 of the Act essentially on the ground that the Assessment Ord....
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....ed by the revisional action of the PCIT, the assessee preferred appeal before the Tribunal. 6. We have carefully considered the rival submissions and challenge to invoking jurisdiction under section 263 of the Act and consequential revisional order. We have also taken note of the material referred to and relied upon during the hearing and the case laws cited. 7. In exercise of powers conferred under section 263 of the Act, the PCIT has proposed revision of the assessment order on two counts: i) The excess stock surrendered by the assessee during the survey, returned as business income, is liable to be considered as unexplained investment under section 69 of the Act and consequently tax was required to be enforced in terms of ....
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.... and tax rate under section prescribed under section 115BBE need not apply. A reply thereof was furnished (dated 19.12.2019) to the A.O. On consideration of the facts and circumstances narrated in the reply and original submissions, the A.O. found merit in the plea of the assessee and dropped the issue and did not disturb the position taken by the assessee. Certain case laws are relied upon to support the stance taken by the assessee. 9. It was contended that statement taken under section 133A of the Act should either be relied in full or not relied upon. A part of statement cannot be read differently. On appraisal of the facts narrated on behalf of the assessee, it is manifest that the assessee has taken a consistent position on submiss....
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....d to be wholly unsustainable in law. Therefore, the action of the A.O. cannot be branded as erroneous per se on this issue. The invocation of section 263 is thus unjustified on this point. 10. The second issue concerning alleged mismatch between figures appearing in the Trial Balance viz-a-viz audited Balance Sheet towards purchases. Noticeably, the Trial Balance has drawn at 06.03.2019 i.e. date of survey whereas, the audited Balance Sheet has been drawn at 31.03.2017. The assessee contends that it cannot be visualised that two figures at different dates would ordinarily match particularly where the business of the assessee is dynamic and continuing. Secondly, the Trial Balance itself has been taken from books of accounts maintained by ....