2026 (5) TMI 481

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....(PER: HONOURABLE MR. JUSTICE BIBEK CHAUDHURI) 1. This is a Miscellaneous Appeal, assailing an order, dated 20th of June, 2022, passed by the Income Tax Appellate Tribunal, Patna Bench, Patna (hereinafter referred to as the "Tribunal" for short) in ITA No. 24/PAT/2021 for Assessment Year 2015-2016 on the following substantial questions of law:- (i) Whether the honourable ITAT is correct in law that the claim of assessee regarding deduction under section 35(2AB) with reference to the certificate in 3CL issued by DSIR, dated 14.8.2017 is accepted only on the ground that the same has been dropped by the Principal Commissioner of Income Tax Mumbai. (ii) Whether the honourable ITAT was not justified in law as it restricts/inf....

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....hereinafter referred to as "I.T. Act" for short). Subsequently the return was scrutinized according to law and the Assessing Officer passed scrutiny assessment order on 31st of May, 2017 under Section 143(3) of the I.T. Act. The assessment order was reviewed by the Commissioner of Income Tax and the same was found to be erroneous as well as prejudicial to the interest of the revenue. Therefore, the Commissioner issued a notice to show cause under Section 263 of the Income Tax Act. The Principal Commissioner of Income Tax-I, Patna, by an order, dated 27th of March, 2021 cancelled and set aside the assessment order under Section 143(3) of the I.T. Act, dated 31st of May, 2017, for assessment year 2015-2016, passed by the Assessment Officer on....

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....ted by the learned Advocate appearing on behalf of the appellant that Section 263 of the I.T. Act empowers the CIT to revise the assessment orders, deemed erroneous and prejudicial to the revenue's interest. Such order can only be made when an Assessing Officer's order lacks enquiry, fails to apply the law or mis-appreciates evidence to the resulting in loss of revenue. The order of Assessing Officer was overturned by the Principal CIT on his finding that an amount of Rs. 20,17,86,432/- was not offered to tax even in view of the fact that no proper enquiry has been made by the Assessing Officer before finalizing the assessment. Similarly, the Principal CIT was well within its authority to held that a sum of Rs. 1,61,83,762/- was not paid to....

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..... Paragraph 23 of the impugned judgement runs as hereunder: - "23. Apart from the above reply, the assessee has filed copies of the invoices issued by Reynolds Petro Chems Ltd., details of TDS etc. After going through these replies, the Assessing Officer has accepted the stand of the assessee. On the strength of these details, it was submitted by the ld. Counsel for the assessee that even though there is no discussion made by the Assessing Officer in the assessment order but, it does not mean that enquiry was not conducted. He submitted that passing of an assessment order is the prerogative of the Assessing Officer and the assessee has no control over the language or the manner in which the assessment order is to be drafted. But on....