TaxTMI 
TaxTMI 
2024 (9) TMI 1849
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....nai-1 (Pr.CIT). Facts leading to revision are substantially the same in all the years. First, we take up ITA No.1508/Chny/2024 for Assessment Year (AY) 2015-16 which assails the impugned order dated 30-03-2024 directing revision of an assessment order passed by Ld. AO u/s 153C r.w.s. 144 on 27-03-2022. 1.2 The grounds of appeal read as under: - 1. For that the Order of the Learned Principal Commissioner of Income Tax (Central) - 1, Chennai u/s 263 of the Income Tax Act, 1961 is opposed to law, facts and circumstances of the case. 2. For that the Learned Principal Commissioner of Income Tax, (Central)-1, Chennai is not justified in invoking the provisions of section 263 of the Act, When the impugned Assessment made u/s 1....
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....ision order of the Learned Principal Commissioner of Income Tax, (Central)-1, Chennai passed u/s 263 of the Income Tax Act, 1961 is bad in law since the base assessment order dated 27.03.0222 passed u/s 153C r.w.s. 144 of the Act itself was bad in law In the absence of any incriminating material and an invalid assessment cannot be set aside u/s 263 of the Act. The Ld. AR has pleaded for admission of the same which has been opposed by Ld. CIT-DR. However, since the additional ground is merely a legal ground only which do not require appreciation of new facts, we admit the same. 1.4 The Ld. AR advanced arguments by submitting that there was due application of mind and one of the possible views was taken by Ld. AO in the assessment order....
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....e assessee. 2.3 Upon analysis of bank accounts, it was found that there were periodic deposits and withdrawals throughout the year in all forms. The Ld. AO formed an opinion that the assessee was carrying out business activities and the credits and debits in the banks accounts were arising out of business transactions. As per enquiries, the assessee was running a grocery and finance business. Under these circumstances, Ld. AO held that credits in the bank account represent business receipts and accordingly, estimated net profit against the same @8% of gross receipts while finalizing the assessment on best judgment basis. During hearing, it emerges that this assessment has attained finality since the assessee has not preferred any further....
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.... examine the nature and source of the credits in bank account and reframe the assessment after providing opportunity of hearing to the assessee. Similar directions were given for other years also. Aggrieved, as aforesaid the assessee is in further appeal before us in all the years. Our findings and Adjudication 4. From the facts, it is quite clear that the assessee was assessed on best judgment basis. The assessee remained a non-filer throughout and did not respond to various notices issued by Ld. AO during the course of assessment proceedings. Left with no option, Ld. AO obtained bank statements of the assessee and upon analysis of the same, reached a conclusion that there were credit and debits. The assessee carried out provision sh....
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.... 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 has taken one view with which the Commissioner does not agree, it cannot be treated as an erroneous order prejudicial to the interest of the revenue, unless the view taken by the Income-tax Officer is unsustainable in law. The said principal has been reiterated by Hon'ble Court in its subsequent judgment titled as CIT V/s Max India Ltd. (295 ITR 282). Similar principal has been followed in Grasim Industries Ltd. ....