2013 (3) TMI 686 - AT - Income Tax

Summary

Issues Involved: Appeals against orders of CIT u/s. 263 for AY 2007-08 and 2008-09.

For AY 2007-08:
The assessee challenged the order passed by the CIT u/s. 263, contending that the assessment order by the Assessing Officer was not erroneous or prejudicial to the Revenue's interest. The CIT found that the AO failed to apply his mind, passed a stereotyped order, and did not make necessary inquiries. Citing the judgment in Malabar Industrial Co. Ltd. v. CIT, the CIT directed the AO to pass a fresh assessment order after proper inquiry and consideration of all aspects. The Tribunal's decision in Rajratna Metal Industries Ltd. v. CIT was deemed inapplicable as it pertained to a different scenario where necessary inquiries were made. The appeals were dismissed.

For AY 2008-09:
Similar to the AY 2007-08 issue, the assessee contested the CIT's order u/s. 263, arguing that the assessment order was not erroneous. The CIT found that the AO failed to apply his mind, issued a cryptic order, and did not conduct necessary inquiries. Relying on the judgment in Malabar Industrial Co. Ltd. v. CIT, the CIT directed the AO to issue a fresh assessment order after thorough inquiry and consideration of all relevant facts. The Tribunal's decision in Rajratna Metal Industries Ltd. v. CIT was considered irrelevant due to the absence of proper inquiries by the AO. Consequently, the appeals were dismissed.