TaxTMI 
TaxTMI 
2026 (3) TMI 694
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....n selected for scrutiny under CASS for the following four reasons: i. Claim of any other amount allowable as deduction in Schedule BP ii. Exports/Imports iii. Duty Drawback iv. International Related Party Transactions in respect of Intangible property 3. Various submissions were filed by the assessee and finally ld. Assessing Officer made certain additions on account Transfer Pricing and on account of Duty drawback thereby assessing income u/s. 143(3) r.w.s.144C(13) of the Act at Rs. 70,57,81,401/-. These assessment records have been examined by the ld. PCIT under the powers provided u/s. 263 of the Act and on verification of the assessment records, ld. PCIT has observed that ld. Assessing Officer has not examined the assessee's claim of depreciation on Goodwill at Rs. 6,21,81,534/- and secondly ld. Assessing Officer has not examined the deduction on account of Warranty provision at Rs. 1,68,66,893/-. Show cause notice issued on 07.03.2025 to which assessee made detailed submissions. However, ld. PCIT was not satisfied and was of the view of the order of the Assessing Officer is erroneous and prejudicial to the interest of Revenue because prop....
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.... or modifying the assessment, or cancelling the assessment and directing a fresh assessment. Explanation- For the removal of doubts, it is hereby declared that, for the purposes of this sub-section,- (a) an order passed on or before or after the 1st day of June, 1988 by the Assessing Officer shall include- (i) an order of assessment made by the Assistant Commissioner or Deputy Commissioner or the Income-tax Officer on the basis of the directions issued by the Joint Commissioner under section 144A; (ii) an order made by the Joint Commissioner in exercise of the powers or in the performance of the functions of an Assessing Officer conferred on, or assigned to, him under the orders or directions issued by the Board or by the Chief Commissioner or Director General or Commissioner authorized by the Board in this behalf under section 120; (b) record shall include and shall be deemed always to have included all records relating to any proceeding under this Act available at the time of examination by the Commissioner; (c) where any order referred to in this sub-section and passed by the Assessing Officer had been the subject matter of a....
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....aring the assessee, he will pass the order. This is the 4th compartment of this section. The learned Commissioner may annul the order of the Assessing Officer. He may enhance the assessed income by modifying the order. He may set aside the order and direct the Assessing Officer to pass a fresh order. At this stage, before considering the multi-fold contentions of the ld. Representatives, we deem it pertinent to take note of the fundamental tests propounded in various judgments relevant for judging the action of the CIT taken u/s 263. 7.2. Hon'ble Supreme Court in the case of Malabar Industrial Co. Ltd. vs. CIT (2000) 243 ITR 83 (SC) has laid down following ratio with regard to provisions of section 263 of the Act: "There can be no doubt that the provision cannot be invoked to correct each and every type of mistake or error committed by the Assessing Officer; it is only when an order is erroneous that the section will be attracted. An incorrect assumption of facts or an incorrect application of law will satisfy the requirement of the order being erroneous. In the same category fall orders passed without applying the principles of natural justice or without applicatio....
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....been e-filed in which the claim of the assessee has been examined by the Auditors and therefore ld. Assessing Officer had no reason to suspect the depreciation claimed on the opening written down value. 9. So far as the decision of this Tribunal in the case of M/s. Gera Developments Pvt. Ltd. Vs. PCIT (supra) referred and relied on by ld.DR is concerned, we find the facts in that case are totally different because in that case the total written down value of the Goodwill has been impaired to Nil amount but the assessee claimed depreciation as per the Income Tax Act on the written down value of the Goodwill. So on one hand there is total impairment of Goodwill and the asset has been brought to Nil value in the regular books of account but on the other hand depreciation has been claimed as per the Income Tax Act on the block of assets. However, ld. Assessing Officer did not raise any question regarding this issue and therefore the revisionary powers exercised by the ld. PCIT on this issue have been confirmed by this Tribunal. However, in the instant case, there is no such case of impairment and it is a simple case of brought forward written down value of Goodwill as on 01.04.2017 ....