2025 (7) TMI 1568

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.... by the AO u/s 144 did not contain any error which was prejudicial to the interest of revenue. 2. Order passed by the Additional Principal CIT u/s 263 is bad in law being violative of principle of natural justice. 3. The Ld. Principal CIT has erred in holding that two different sets of Profit & Loss accounts were prepared by the assessee. 4. The Ld. Principal CIT has failed to give proper and sufficient opportunity to the assessee to explain the alleged difference in the Profit & Loss Account before drawing an adverse inference that the accounts were manipulated & fudged by the assessee. 5. The Ld. Principal CIT completely ignored that the alleged difference between the figures submitted before him and re....

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....urnish supporting documents if any. After considering the reply furnished by the assessee. Ld. PCIT was of the opinion that the assessment order passed u/s 144 of the IT act by the FAO is erroneous in so far as it is pre-judicial to the interest of Revenue and the same is set-aside for framing fresh assessment by observing as under :- "10. In consideration of the discussion above, I am not in agreement with the assessee's contention before me that the assessment order is neither erroneous nor prejudicial to the interest of revenue. Here, we have a case where no response was made by the assessee during the entire length of the assessment proceedings, two sets of profit & loss account and balance sheet for A.Y. 2018-19 have been ....

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....plicable, the Assessing Officer is also directed to initiate penalty and prosecution proceedings as per the provisions of the Income Tax Act, 1961." 5. It is this order against which the assessee is in appeal before this Tribunal. 6. When the case was called for hearing neither anybody appeared from the side of the assessee nor any application for adjournment was filed despite due service of notice of hearing. However, a detailed written submission along with enclosures was furnished with a request to consider the same for deciding the appeal filed by the assessee. 7. Ld. DR appearing from the side of the Revenue relied on the order passed by LD. PCIT and submitted that the FAO has passed an ex-parte order u/s 144 of the IT Act, si....