TaxTMI 
TaxTMI 
2025 (9) TMI 220
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....evision of an assessment as framed by Ld. Assessing Officer [AO] u/s. 143(3) r.w.s. 147 of the Act on 10-04-2017. 2. The registry has noted delay of 838 days in the appeal, the condonation of which has been sought by Ld. AR on the ground that substantial period of delay falls within lockdown situation arising out of Covid-19 Pandemic. A condonation petition has been filed which is supported by an affidavit of one of the partners of the assessee-firm. It has been stated that the original assessment was framed on 10-04- 2017 and as on 31-03-2017, all the partners had separated and the business stood closed at the address given in the return of income. No business was in existence after 31-03-2017 which led to delay in the appeal. The heari....
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....onal excise duty and administrative expenses which were also examined. The details of purchases were also examined. The various expenditure as claimed by the assessee was perused. After due consideration of assessee's submissions and explanations, Ld. AO assessed total income at Rs. 4.25 Lacs as against returned income of Rs. 3.10 Lacs and framed the assessment. 5. Subsequently, Ld. Pr. CIT, upon perusal of case records, alleged that the assessment was completed without making in-depth enquiries. The first issue that was flagged was that the two partners of the assessee-firm introduced capital of Rs. 43.20 Lacs, the sources of which were not verified. The second issue was that the assessee debited expenses of Rs. 6.60 Crores as License f....
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....tails as requisitioned vide questionnaire and as enumerated in the order sheet entries were filed by the assessee which were duly examined by Ld. AO. The assessment order also takes note of the fact that the books of accounts were produced by the assessee which was examined on test check basis. The assessee filed details of various expenditure which were also examined. The details of purchases were also examined. After due consideration of assessee's submissions and explanations, Ld. AO substantially accepted the returned income and made adhoc disallowance of expenditure and finally, assessed total income at Rs. 4.25 Lacs as against returned income of Rs. 3.10 Lacs. 7. The perusal of documents, as placed in the paper-book, would show tha....
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....me were aptly replied by the assessee from time to time. Upon perusal of all these replies and documents, it could very well be said that whatever information was called for by Ld. AO, the same was duly been supplied by the assessee. The Ld. AO considered the replies of the assessee and after having satisfied with aforesaid explanation as furnished by the assessee, he chose to substantially accept the returned income of the assessee. It could thus be seen that Ld. AO had raised a specific query on various issues as flagged in the impugned revisionary order and accepted the claim of the assessee with due application of mind. Therefore, it is a case of acceptance of one of the plausible views which was more on facts and the said view could no....
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....fixed assets were also furnished by the assessee. On these facts, the allegation of Ld. Pr. CIT, while proposing impugned revision of the assessment order, could not be sustained. 9. The Hon'ble Supreme Court in Malabar Industrial Co. Ltd. vs. CIT (243 ITR 83) has held that the phrase 'prejudicial to the interests of the revenue has to be read in conjunction with an erroneous order passed by the Assessing Officer. Every loss of revenue as consequence of an order of the Assessing Officer cannot be treated as prejudicial to the interest of the revenue. For example, when an Income-tax Officer adopted one of the courses permissible in law and it has resulted in loss of revenue; or where two views are possible and the Income-tax Officer h....
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....orders which already stood concluded. Such action will be against the well-accepted policy of law that there must be a point of finality in all legal proceedings, that stale issues should not be reactivated beyond a particular stage and that lapse of time must induce repose in and set at rest judicial and quasi-judicial controversies as it must in other spheres of human activity. If Ld. AO, acting in accordance, with law makes a certain assessment, the same could not be branded as erroneous simply because, according to revisionary authority, the order should have been written more elaborately. This section does not visualize a case of substitution of the judgment of the revisionary authority for that of the Income-tax Officer, who passed th....