TaxTMI 
TaxTMI 
2025 (6) TMI 1404
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....ds and rusks. Assessee during the previous year 2010-11 filed return on 30.9.2011 declaring an income of Rs. 2,26,070/.-. Later, on the case was selected for scrutiny. The assessment was completed on the returned income vide order dated 4.6.2013 u/s. 143(3) of the Act. Ld. PCIT noted that the assessment order passed by the AO appears to have been passed without proper inquiry. Hence, proceedings u/s. 263 of the Act, were initiated accordingly. Consequently, a notice dated 9.10.2015 u/s. 263 of the Act was issued to the assessee. In response to the same, assessee's AR filed the reply, which was considered by the Ld. PCIT, who observed as under:- (a) During the relevant Previous Year, the assessee has withdrawn Rs. 44,80,400/- from the ....
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....ndry creditors worth Rs. 1,27,689/- The total sales effected during the entire year was Rs. 2,85,66,581.30. A comparison of the figures of sundry creditors and total - sales with the total amount of sundry receivables reveals a stark contrasting picture which ought to have been looked into by the Assessing Officer. Therefore, this issue is being set aside to the file of the AO directing him to co-relate the amount of sundry debtors with the amount of sundry creditors and the total turn-over of the firm after providing necessary opportunity to the assessee. (c) The assessee vide his reply dated 4/3/2016 has submitted that the firm M/s A.R Foods was not doing well and therefore, a sum of Rs. 2,00,30,000/-was provided by M/s Garg Agencies (w....
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....on their face value [Jagdish Kumar Gulati vs. CIT, 269 ITR 71 (All] Therefore, this issue is being set aside to the file of the AO directing him to investigate the inflow of money from M/s Garg Agencies into M/s A.R Foods and the modus operandi of investment by the assessee into M/s AR Dwelling Pvt. Ltd after providing reasonable opportunity to the assessee. (d)A perusal of the P&L a/c reveals that a sum of Rs. 27,02,436/- has been debited as bank charges and interest. No details have been gathered by the A.O in this regard. Failure to enquire into the glaring issues during the course of assessment proceedings by the AO tantamounts to the assessment being rendered erroneous. Reliance is further placed on the following judgment: Gee Ve....
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....no legal warrant to initiate proceedings with the issue of notice u/s. 263 of the Act. Hence, the impugned order may be quashed accordingly. 5. Per contra, Ld. DR submitted that Id. PCIT has passed a well reasoned order, which does not need any interference. 6. Upon careful consideration, we note that in this case the return was filed on 30.9.2011 declaring income of Rs. 2,26,070/- and the same was processed u/s. 143(1) of the Act on income returned. Later on, the case was selected for scrutiny. It is further noted that AO issued notice u/s. 143(2) on 29.9.2012 which was duly served on 30.9.2-012. Further, notices under section 142(1) issued from time to time and also required to furnish the necessary information vide order sheet entries ....
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.... is that there is receivables declared by the assessee of Rs.1,75,86,386/- as against meager sundry creditors worth Rs. 1,27,689/- The Ld. PCIT notes that the sundry creditors receivable and total sale effected during the year reveals a stark contrasting picture which should have been verified by the Assessing Officer. The assessee before the AO filed the complete books of accounts which were duly examined by the AO. We noted that the assessee before the AO filed the complete books of accounts which were duly examined by the AO and even now before us assessee filed the complete details of sundry creditors vis-a-vis sale effected during the year and sundry receivables. We find no reason that what was the ambiguity having sundry receivables o....