TaxTMI 
TaxTMI 
2024 (2) TMI 1602
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....the Revenue and therefore the order appealed against be cancelled." 3. Brief facts of the case as culled out from the records are that the assessee is a company and income of Rs.2,63,990/- declared in the return of income for Assessment Year 2015-16 filed on 30/09/2015. Case selected for scrutiny through CASS and assessment framed u/s 143(3) of the Act disallowing excessive deduction claimed u/s 80IE of the Act at Rs.6,86,200/-, thereby assessing income at Rs.9,34,400/-. Before concluding the assessment, relevant notice u/s 143(2) and 142(1) of the Act were issued and duly served and the reply to the questionnaire issued u/s 142(1) of the Act filed by the assessee enclosing necessary details. 3.1. Subsequently, the ld. Pr. CIT, called for the assessment records and after going through the same noticed that there is a transaction of purchase of property valuing at Rs. 11.41 Crores which has not been verified by ld. Assessing Officer. After considering the records, the ld. Pr. CIT assuming jurisdiction u/s 263 of the Act issued notice u/s 263 of the Act, dt. 06/03/2020, which read as follows:- "On examination of the assessment records of above mentioned assessment year....
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....tion of purchase of property and directed the Assessing Officer to pass fresh assessment order after examining the transaction of purchase of property in question. The relevant finding of the ld. Pr. CIT reads as follows:- "6. I have carefully considered the facts of the case and gone through the submission of the assessee. On perusal of the assessment record, it is seen that, the primary reason for scrutiny i.e. purchase of property for Rs. 11.41 crores had not been verified at all by the AO. The AO accepted the claim only on the basis of a ledger copy and some bank entries and even, the conveyance deed is not placed on record. On the other hand, the AR of the assessee has stated that, in the course of assessment proceedings, the Assessing Officer has directed assessee to explain the above investment. The same was explained by the Assessee's Authorized Representative vide its letter dated 15.09.2017, wherein in Para-4, it has been explained as under: "Large investment in property (AIR) as compared to total income. The Assessee has entered into an Agreement for purchase of building at Upper Worli, Mumbai from Shreeniwas Cotton Mills Limited, on 28th November 2014.....
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....e interest of the revenue." 5. Aggrieved the assessee is now on appeal before this Tribunal. 6 (a). The ld. Counsel for the assessee, took us through the paper book containing 75 pages filed on 15/06/2023 and another paper book filed on 22/02/2022 containing 95 pages. His arguments are focused on the fact that the case of the assessee was selected for scrutiny for "large investment in property" and the ld. Assessing Officer has called for the details in the notice issued u/s 142(1) of the Act and detailed enquiry has been conducted. After considering the details including the bank statements, loan statement of ICICI Bank, ledger of the parties attached to the said transaction, the ld. Assessing Officer has come to the conclusion that transaction is genuine and no addition is called for. He also submitted that though the ld. Assessing Officer has not made any observation in the body of the assessment order but the details have been examined. He thus submitted, that firstly the ld. Pr. CIT erred in assuming jurisdiction and secondly even on merits, there is no scope of any addition because all the elements required to prove the genuineness of the transaction has been placed bef....
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....of June, 1988, the powers of the Commissioner under this sub-section shall extend and shall be deemed always to have extended to such matters as had not been considered and decided in such appeal. (2) No order shall be made under sub-section (1) after the expiry of two years from the end of the financial year in which the order sought to be revised was passed. (3) Notwithstanding anything contained in sub-section (2), an order in revision under this section may be passed at any time in the case of an order which has been passed in consequence of, or to give effect to, any finding or direction contained in an order of the Appellate Tribunal, National Tax Tribunal, the High Court or the Supreme Court. Explanation- In computing the period of limitation for the purposes of subsection (2), the time taken in giving an opportunity to the assessee to be reheard under the proviso to section 129 and any period during which any proceeding under this section is stayed by an order or injunction of any court shall be excluded." 8.1. A bare perusal of the sub section-1 would reveal that powers of revision granted by section 263 to the learned Commissioner have four c....
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.... of the revenue' has to be read in conjunction with an erroneous order passed by the Assessing Officer. Every loss of revenue as a consequence of an order of the Assessing Officer cannot be treated as prejudicial to the interests of the revenue, for example, when an ITO adopted one of the courses permissible in law and it has resulted in loss of revenue; or where two views are possible and the ITO has taken one view with which the Commissioner does not agree, it cannot be treated as an erroneous order prejudicial to the interests of the revenue unless the view taken by the ITO is unsustainable in law. It has been held by this Court that where a sum not earned by a person is assessed as income in his hands on his so offering, the order passed by the Assessing Officer accepting the same as such will be erroneous and prejudicial to the interests of the revenue - Rampyari Devi Saraogi v. CIT [1968] 67 ITR 84 (SC) and in Smt. Tara Devi Aggarwal v. CIT [1973] 88 ITR 323 (SC)." 9. While going through the above judgement of the Hon'ble Apex Court and the relevant provisions of the Act, we first need to examine whether the issue referred by the ld. Pr. CIT in the show cause notice has be....