TaxTMI 
TaxTMI 
2023 (12) TMI 1364
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....OF THE CASE: 2. The facts of the case are as follows: A. The present Appellant is a firm engaged in the business of construction and real estate development and has filed its income-tax return before the Assistant Commissioner of Income-tax Circle-1(2), Bhubaneswar (hereinafter referred as 'the ACIT' for brevity). B. The learned ACIT in consequence to search and seizure operation conducted by the Income-tax Department has passed the order under section 143(3) of the Act dated 31.12.2009 after taking approval under section 153D of the Act by computing a total income at Rs. 64,53,200/-. C. A notice under section 148 of the Act dated 24.08.2011 has been issued and the assessment order has been passed under section....
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....) introducing an appellate system with dynamic jurisdiction. Section 255 (8): The Central Government may, for the purposes of giving effect to the scheme made under sub-section (7), by notification in the Official Gazette, direct that any of the provisions of this Act shall not apply to such scheme or shall apply with such exceptions, modifications and adaptations as may be specified in the said notification. Provided that no such direction shall be issued after-the:' 31st day of March, 2024. Section 255 (9): Every notification issued under subsection (7) and sub-section (8) shall, as soon as may be after the notification 'is issued, be laid before each House of Parliament." H. On bare perusal of ....
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....ITAT has failed to cancel the order under section 263 of the Act which has been passed without considering the legality of making assessment by the learned Assessing Officer. C. The learned ITAT is not justified in not accepting that the order passed by the learned Assessing Officer which was on the basis of enquiry made by the Director of Income-tax (Investigation), Bhubaneswar and for which the order under section 263 of the Act is illegal and contrary to the facts and circumstances of the case. D. In such view of the matter, the Petitioner submitted that the impugned order may be quashed and the appeal may be allowed. III. SUBMISSIONS OF RESPONDENT: 4. Per contra, learned counsel for the Respondent intently made t....
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....cial to the interest of the revenue. This being so, as the AO has not applied his mind to the information that has been supplied by the assessee nor he has considered such information nor formed an opinion in respect of such information, the Ld. CIT, Bhubaneswar was right in Invoking his powers u/s. 263 of the Act in revising the assessment order passed under Section 143(3)/147 of the Act dated 30.3.2013 in the case of the assessee." C. Therefore, the learned ITAT has rightly rejected the contention of the appellant and approved the order passed by the revisional authority. For better appreciation of the case, section 263 of IT Act is reproduced below :- "263. Revision of orders prejudicial to revenue 1) The [Prin....
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....ord" shall include and shall be deemed always to have included] all records relating to any proceeding under this Act available at the time of examination by the "[Principal Commissioner or] Commissioner, (c) where any order referred to in this sub-section and passed by the Assessing Officer had been the subject- matter of any appeal, '[filed on or before or after the 1st day of June, 1988] the powers of the [Principal Commissioner or] Commissioner under this sub- section shall extend [and shall be deemed always to have extended) to such matters as had not been considered and decided in such appeal.] Explanation 2-For the purposes of this section, it is hereby declared that an order passed by the Assessing Officer shal....
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....er or injunction of any court shall be excluded." 5. This section empowers the revisional authority that in case the AO has not discussed the issues in the order of assessment and no opinion was formed by the AO on the said issue, then the commissioner is quite right to pass order under Section 263 of IT Act. 6. The question of law admitted by this Court may not be treated as the substantial question of law as the learned ITAT has already answered the query of the appellant and the issue of difference in balance sheet and cash flow are factual issues which have already been considered by the revisional authority under the ambit of Section 263 of IT Act. Hence, the appeal filed by the appellant may be dismissed. IV. COURT'S REASONIN....