TaxTMI 
TaxTMI 
2024 (12) TMI 1263
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....urther erred in treating the assessment order dated 21-12-2017framed u/s 143(3) of the Act as erroneous and prejudicial to the interest of the revenue. 3. The appeal is time barred by 345 days. It is submitted that Hon'ble Supreme Court of India has extended the limitation period due to COVID-19. The impugned order passed during the COVID period therefore the ground is sufficient for condonation the delay. The delay is condoned and appeal is admitted for hearing on merit. 4. The assessee has raised the following grounds in appeal as under: 1. That Ld. Pr. CIT has erred in law as well as on facts in setting aside the assessment order passed by AO on 21-12-2017 u/s 143(3) of the IT Act, 1961 because: (a) neither the assessment was erron....
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....sment was completed at an assessed income of Rs. 1,4532,260/- by making the addition under Section 143(3) of the Act. The contention of the PCIT is that while framing the assessment order the Assessing officer has not enquired about the cash deposits amounting to Rs. 835000/- there by making the assessment order not only erroneous but also prejudicial to the interest of the revenue. 7. The PCIT served the following notice assuming jurisdiction us 263 of the Act: 8. A perusal of the aforementioned notice shows that the Principal CIT has alleged that the assessee has not shown the cash deposit of Rs. 8,35,000/- in the bank account of the assessee and in PPF account of his minor son. Further, the assessee put our attention to the following f....
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....the Assessing Officer failed to make enquiries/verification which should have been made for determining the correct total income u/s 143(3) of the Income Tax Act; in terms of not enquiring into source of cash deposits and all securities/stock/share transactions during the year, the source and income resulting thereof." 9. We find that the notice under Section 142(1) of the Act dated 18-10-2017 was issued and served upon the assessee to which, on 02-11-2017 the assessee filed a detailed reply submitting copy of reply filed by assessee before assessing officer, copy of acknowledgment slip dated 01-01-2013, copy of letter of allotment, copy of notes, copy of ledger and copy of details of value of securities transaction. Relevant reply is as u....
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....nder: "The power of suo motu revision under subsection (1) is in the nature of supervisory jurisdiction and the same can be exercised only if the circumstances specified therein exist. Two circumstances must exist to enable the Commissioner to exercise? power of revision under this sub-section, viz., (i) the order is erroneous; (ii) by virtue of the order being erroneous prejudice has been caused to the interests of the Revenue. It has, therefore, to be considered firstly as to when an order can be said to be erroneous. We find that the expressions "erroneous", "erroneous assessment" and "erroneous judgment" have been defined in Black's Law Dictionary. According to the definition, "erroneous" means "involving error; deviating from the....
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....at a figure higher than the one determined by the Income-tax Officer. That would not vest the Commissioner with power to re-examine the accounts and determine the income himself at a higher figure. It is because the Income-tax Officer has exercised the quasi-judicial power vested in him in accordance with law and arrived at conclusion and such a conclusion cannot be termed to be erroneous simply because the Commissioner does not feel satisfied with the conclusion. It may be said in such a case that in the opinion of the Commissioner the order in question is prejudicial to the interests of the Revenue. But that by itself will not be enough to vest the Commissioner with the power of suo motu revision because the first requirement, viz., that ....
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.... not, he has no authority to initiate proceedings for revision. Exercise of power of suo motu revision under such circumstances will amount to arbitrary exercise of power. It is well-settled that when exercise of statutory power is dependent upon the existence of certain objective facts, the authority before exercising such power must have materials on record to satisfy it in that regard. If the action of the authority is challenged before the court it would be open to the courts to examine whether the relevant objective factors were available from the records called for and examined by such authority. The Income-tax Officer in this case had made enquiries in regard to the nature of the expenditure incurred by the assessee. The assessee....