TaxTMI 
TaxTMI 
2025 (2) TMI 1792
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....sioner of Income Tax, Nagpur-1, Nagpur, relating to assessment years 2017-18, 2018-19 and 2019-20. Since common issues are involved in these appeals, these appeals were heard together and are being disposed of by this consolidated order for the sake of convenience and brevity. 2. First we take-up appeal ITA.No. 251/NAG/2024 for the assessment year 2017-2018 as "lead" appeal. Both the parties are agreed to that the decision taken in this appeal, be applicable in the remaining appeals. ITA.No. 251/NAG/2024 - A.Y. 2017-2018 [Neel Infratech] : 3. Facts of the case, in brief, are that the assessee is a partnership firm engaged in marketing associate in the field of Real Estate Business. The assessee filed it's original return of income ....
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....oted the assessee has shown profit on sale of plots at Rs. 39,24,600/- which is it's marketing income and the said income was arrived at 40 : 60 ratio with Tirupati Developers. In this regard, the Assessing Officer noted that the cash receipts received against the plots from the customers were neither recorded in the books of account nor it offered for the taxation and as per the seized documents the total cash receipts are at Rs. 56,97,000/- in respect of sale of plots and estimated the assessee's share of marketing income will be at Rs. 22,78,800/- @ 40%. Since the assessee did not show this impugned sum of Rs. 22,78,800/-, the Assessing Officer estimated the impugned sum as derived from marketing income by making the addition and determi....
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..... The PCIT after examining the explanation offered by the assessee and the assessment order, noted two issues (i) that the Assessing Officer had not made proper inquiries while making the impugned addition of Rs. 22,78,800/- and (ii) not looked into expenses booked in the P & L A/c and the deduction and payment/receipt of TDS on commission expenditure/receipt and other expenses. Therefore, the learned PCIT noted that the order of the Assessing Officer is not only erroneous but also prejudicial to the interest of revenue as per provisions of sec.263 and Explanation 2(1) and 2(b) to sec.263 of the Act and set aside the assessment order of the Assessing Officer and directed the Assessing Officer to re-do the assessment by making necessary inqu....
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....ly, directed the Assessing Officer to delete the impugned addition(s) by giving full relief to the assessees. He submitted that the PCIT must give the assessee an opportunity of being heard with regard to error which he proposes to revise u/sec.263 of the Act. In absence of sufficient opportunity to the assessee, the order passed by the Commissioner u/sec.263 of the Act is vitiated under law. He further drew the attention of the Bench that learned PCIT has directed the Assessing Officer to re-do assessment afresh on two issues i.e., (i) basis of 40% sharing between Tirupati Developers and assessee and (ii) expenses booked in the P & L A/c and deduction and payment/receipt of TDS onc omission expenditure/receipt and other expenses. He, submi....
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....fore the learned CIT(A), the learned CIT(A) after examining the written submissions, sale deeds, lay-outs, other documents, and the case laws relied on by the assessee, deleted the entire addition of Rs. 22,78,800/-. Since the learned CIT(A) after through verification of the documents and case law placed before him and the impugned addition made based on presumption and "dumb documents" which does not part of "Books of account" and are irrelevant and not admissible u/sec.34 of the Evidence Act, he granted full relief to the assessee by deleting the addition made by the Assessing Officer in the hands of the assessee. Therefore, considering the totality of the facts and circumstances of the case, we find that the learned PCIT was not justifie....
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....d or by the [Principal Chief Commissioner or] Chief Commissioner or [Principal Director General or] Director General or [Principal Commissioner or] Commissioner authorised 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 [Principal Commissioner or] Commissioner; (c) where any order referred to in this sub- section and passed by the Assessing Officer had been the subject matter of any appeal, [filed on or before or after the 1st day of June, 1988], the powers of the [Principal Commissioner or] Commissioner under this sub-section shall extend [and shall be de....