TaxTMI 
TaxTMI 
2025 (7) TMI 1376
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....the learned Pr.CIT is reproduced as under: NOTICE FOR THE HEARING M/s/Mr/Ms Subject: Notice for Hearing in respect of Revision proceedings u/s 263 of the THE INCOME TAX ACT, 1961 - Assessment Year 2017-18. In this regard, a hearing in the matter is fixed on 09/03/2022 at 11:30 AM. You are requested to attend in person or through an authorized representative to submit your representation, if any alongwith supporting documents/information in support of the issues involved (as mentioned below). If you wish that the Revision proceeding be concluded on the basis of your written submissions/representations filed in this office, on or before the said due date, then your personal attendance is not required. You also have the option to file your submission from the e-filing portal using the link: incometaxindiaefiling.gov.in Please refer to the above. 2. The case record for the A.Y. 2017-18 was called for and examined by the undersigned. The undersigned considers that the assessment order for the A.Y. 2017-18 passed on 28.12.2019 u/s 143(3) of the Income Tax Act 1961 at total income of Rs. 12,42,800/- is erroneous in so far as it is prej....
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....emoval of doubts, it is hereby declared that, for the purposes of this sub- section,- (a) an order passed on or before or after the 1st day of June, 1988 by the Assessing Officer shall include -- (i) an order of assessment made by the Assistant Commissioner or Deputy Commissioner or the Income-tax Officer on the basis of the directions issued by the Joint Commissioner under section 144A; (ii)an order made by the Joint Commissioner in exercise of the powers or in the performance of the functions of an Assessing Officer conferred on, or assigned to, him under the orders or directions issued by the Board or by the Principal Chief Commissioner or Chief Commissioner or Principal Director General or Director General or Principal Commissioner or Commissioner authorised by the Board in this behalf under section 120; (b) "record" 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 68 [Chief Commissioner or Chief Commissioner or Principal] Commissioner or Commissioner; (c) where any order referred to in this sub-section and passed by t....
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.... and not those who sleep over their rights" is applicable in this case. 4. I have perused the assessment record and following observations are made with regard to the assessment record being considered erroneous: (a) The case was picked up for scrutiny to examine Quantitative details of principal items of goods traded or raw materials as well as finished goods. It was pointed out that in tax audit report, no quantitative details of principal items of goods traded or raw material as well as finished goods (item 35(b) of form 3D) have been reported and assessee is discussing PBDIT which is less than industry average. (b) During the year under consideration, assessee has shown turnover at Rs. 206.64 crores and net profit has been declared at 0.05%. In the show cause notice issued by the AO on 10.12.2019, it has been mentioned that in this line of business, net profit has been shown by various assessee in the surrounding areas at the rate of 0.5% to 2%. Accordingly, the net profit was proposed to be estimated at 1.5% and the net profit worked out at Rs. 3,09,96,315/- and addition of Rs. 2,94,54,965/- (Rs. 3,09,96,315/-Rs. 10,41,350/- already discussed) was pr....
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....s erroneous and prejudicial to interest of Revenue." Held,yes. It was further held by the Hon'ble Court that: " The Commissioner may consider an order to be 'erroneous' for the purpose of section 263 even if error of law may not be apparent on the face of the order. The Commissioner may consider an order of the assessing authority to be erroneous not only if it contains some apparent error of reason or of law or of fact on the face of it but also because it is stereotype order which simply accepts what the assessee has stated in his report and fails to make inquiry which are called for in circumstances of the case." (ii) Further in the case of Ram Pyari Deri Saraogi v/s CIT(1968) 67 ITR 184, the Hon'ble Apex Court while examining the question of revisional power of the CIT under the old Act held that," where assessment was completed by the ITO with under haste, without holding necessary enquiry, it is sufficient to hold that the assessment order is erroneous." (iii) In the case of Smt Tara Devi Agarwal v/s CIT(1973) 88 ITR 323(SC), it was held by the Hon'ble Apex Court that, " even where income has not been earned and is not a....