2014 (4) TMI 1337

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....n these appeals, these appeals are heard together and decided by this common order. ITA.No.1797/Hyd/2013 : 2. This appeal was filed with a delay of 585 days. Assessee has filed affidavit explaining that the order under section 263 was not appealed as the assessee was of the opinion that in consequential order A.O. would consider the facts. However, A.O. has passed the order making additions and when the matter was contested before the Ld. CIT(A), the appeal was dismissed observing that CIT(A) cannot decide the appeal when CIT exercised jurisdiction under section 263 and the assessment order was consequent to the directions of the order passed under section 263 and consequent to that, further appeal was preferred to the ITAT. At that t....

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....account was to the tune of Rs. 1,08,44,028/-. Thereafter, learned CIT considered the opening and closing balance shown in the ledger account of that company and directed the A.O. to make addition of Rs. 4,23,814/- as its gross receipts. Thereafter, with respect to opening balance shown at Rs. 7,08,483/-, the learned CIT directed the A.O. to verify whether this has been in the gross contracts receipts shown and decide according to law. With reference to diesel expenses also while allowing the expenditure as deducted by the said company/or reimbursed, the Ld. CIT(A) directed the A.O. to disallow an amount of Rs. 3,02,466/- on the reason that assessee has not produced any evidence in support of the claim of the above amount. 5. The next iss....

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....tiated under section 147 and the order under section 143(3) read with section 147 were passed on 15.12.2009, there seems to be no enquiry on various issues raised by the Ld. CIT and assessee could not place on record any information that these issues have been examined by the A.O. in the course of assessment. Therefore, we are of the opinion that Ld. CIT exercised jurisdiction under section 263 correctly on the facts of the case. 8. However, we are not in agreement with the directions given by the CIT to add the closing balance of the amount and also disallow the expenses in the course of proceedings under section 263 without subjecting them to verification by the A.O. In the absence of proper opportunity being given to the assessee to j....