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Issues involved: Appeal against CIT's order setting aside assessment made by A.O. u/s 143(3) for Assessment Year 2002-03.
Assessment of Loss from Sale of Shares: - A.O. assessed loss from sale of shares by assessee. - CIT raised concerns about shares being sold at a loss, shares not quoted in stock exchange, and relationship with sister concern. - Assessee provided details to A.O. regarding loss from sale of shares, denied sister concern relationship. - CIT found A.O.'s assessment erroneous, prejudicial to revenue, and set it aside. - Assessee argued CIT did not independently review submissions, cited case laws, but appeal dismissed as CIT's decision upheld. Commission Payments and Manufacturing Expenses: - CIT questioned commission payments and manufacturing expenses claimed by assessee. - Assessee explained commission payments were for raw material purchases and provided details to A.O. - CIT found A.O. did not examine various issues during assessment, cancelled assessment. - Assessee contended CIT did not apply own mind, cited case laws, but appeal dismissed as CIT's decision upheld. Valuation of Finished Goods and Other Expenses: - CIT noted discrepancies in valuation of finished goods, inclusion of taxes, and manufacturing expenses. - Assessee clarified excise duty was included in closing stock valuation, sales tax not part of closing stock. - CIT found A.O. failed to inquire into various aspects, leading to erroneous assessment. - CIT's decision upheld as A.O. did not conduct necessary inquiries, resulting in prejudicial assessment to revenue. Conclusion: - CIT's decision to set aside A.O.'s assessment upheld due to lack of proper inquiries by A.O. on various issues raised. - Assessee's arguments regarding submissions, case laws, and lack of independent review by CIT were dismissed. - Appeal of the assessee against CIT's decision was ultimately dismissed.
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