9911796707
TMI Blog2012 (11) TMI 720X X X X Extracts X X X X X X X X Extracts X X X X ..... lared loss of Rs. 93,33,000/-. The Assessing Officer framed a scrutiny assessment under section 143(3) of the Act on 18.1.2006 disallowing the reduction of Rs. 1,08,16,965/-. He also initiated penalty proceedings under section 271(1)(c) of the Act. He eventually passed an order imposing penalty of Rs. 1,19,25,702/-. The petitioner challenged the said order of penalty before the Commissioner by filing revision application under section 264 of the Act. After condoning delay caused in filing such revision application, the proceedings were taken up by the Commissioner for hearing. Before the Commissioner the petitioner had pointed out the quantum additions on the basis of which the penalty was imposed were deleted. It had also come on record th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the IT. Act, 1961 by a backdoor entry. In this regard, the application filed by the assessee u/s. 264 of the I.T. Act, 1961 is not tenable." 3. From the impugned order of the Commissioner it can be seen that he rejected the revision petition on two grounds. Firstly, that the question of quantum additions has not achieved finality. Against the judgement of the Tribunal confirming deletion of such quantum additions, the Revenue has preferred further appeal before High Court and such appeal is pending. Second reason why the Commissioner was not inclined to entertain the revision petition was that according to him revision proceedings are contemplated only to mitigate the situation faced by the assessee who are unable to approach the appellate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in case of C. Parikh & Co. v. CIT [1980] 122 ITR 610 making following observation : "It is clear that under section 264, the Commissioner is empowered to exercise revisional powers in favour of the assessee. In exercise of this power, the Commissioner may, either of his own motion or on an application by the assessee, call for the record of any proceeding under the Act and pass such order thereon not being an order prejudicial to the assessee, as the thinks fit. Sub-sections (2) and (3) of section 264 provide for limitation of one year for the exercise of this revisional power, whether suo motu, or at the instance of the assessee. Power is also conferred on the Commissioner to condone delay in case he is satisfied that the assessee was p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... totalling of purchases before the ITO, it was within the power of the Commissioner to admit such a ground in revision. The Commissioner was also not right in holding that the over-assessment did not arise from the order of the assessment. Once the petitioner was able to satisfy that there was a mistake in totalling purchases and that there was under-totalling of purchases to the tune of Rs. 20,000, it is obvious that there was over-assessment. In other words, the assessment of the total income of the assessee is not correctly made in the assessment order and it has resulted in over-assessment. The Commissioner would not be acting de hors the I.T. Act, if he gives relief to the assessee in a case where it is proved to his satisfaction that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Commissioner may exercise in the revisional jurisdiction under section 264 of the Act. For example, under section 246A of the Act read with section 251, the Commissioner may even enhance an assessment or penalty of course, after hearing the assessee which obviously cannot be done under section 264 of the Act, as is already noted here-in-above. 6. With respect to the Commissioner's stand that deletion of quantum additions not having achieved finality, the revision should be dismissed, also we are not in agreement. The penalty was based on certain quantum additions. Such additions came to be deleted by the Commissioner(Appeals). Further appeal by Revenue before the Tribunal was rejected. When the Commissioner was deciding the revision p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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