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TMI Blog2013 (6) TMI 661X X X X Extracts X X X X X X X X Extracts X X X X ..... he perusal of the order-sheet and voluminous compliance filed by the assessee which is placed on paper book, clearly suggest that proper inquiries were made which are duly complied on the indicated issues. Though DR has referred to the short and cryptic order of AO CIT no where refers to the short order. It is not the shortness of the order which makes it tenable or not, rather there are contents of the order about clear findings of the AO on the record which will make the order tenable. Thus in agreement with assessee that while exercising powers u/s 263 CIT should not frame issues about third parties whose record was not before him as relying upon CIT Vs. Anil Kumar Sharma (2010 (2) TMI 75 - DELHI HIGH COURT), CIT Vs. Sunbeam Auto Ltd. (2009 (9) TMI 633 - Delhi High Court), DLF Ltd. (2012 (9) TMI 626 - DELHI HIGH COURT), Max India Ltd. (2007 (11) TMI 12 - Supreme Court of India), Malabar Industrial Co. Ltd. (2000 (2) TMI 10 - SUPREME Court), M/s New Cyberabad City (2013 (6) TMI 531 - ITAT HYDERABAD) and The Civil Services Society (2013 (6) TMI 530 - ITAT DELHI). Thus order passed by the CIT u/s 263 is quashed - assessee's appeal allowed. - ITA No.4491 /Del/ 2012 - - - Dated:- 14 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... copy of the order to the assessee." 2.1. The CIT while exercising jurisdiction u/s 263 called for the record and held as under: "The examination of the Income Tax assessment records of above mentioned assessee for A. Y 2009-10 revealed that:- i). The assessee has introduced new share application money to the tune of Rs. 10,00,000/-. No details with regard to the new share application money, vlz PAN, copy of ITR, copy of bank account, confirmation or source from where the said loans have been advanced were filed. In the absence of the same, credit worthiness of persons advancing share application money were not ascertained by the then Assessing Officer. ii. The assessee has declared sundry creditors amounting to Rs. 37,82,302/-. No details, whatsoever, with regard to the same have either been filed by the assessee or the same were requisitioned by the then Assessing Officer. Further, no enquiry in respect of the same has been made by the A.O. iii. Details of closing stock/working progress had not been called for by the A.O. iv. The assessee has declared 'other Income' to the tune of Rs. 60,58,993/-. Details with regard to the same had not been called for by the then A.O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and set aside the assessment with following directions and observations: "The working of percentage and the calculations of revenue thereupon done by the assessee is not clear since the exact method adopted for the calculation of percentage has not been provided by the assessee. The above issue was required to be verified in details at the time of assessment. Therefore, the Assessing officer is directed to call for complete details of working of percentage completion method adopted by the assessee for calculating its revenue and then verify where the assessee ahs applied the percentage of completion method as per the accounting standards." Aggrieved, assessee is before us. 3. Ld. Counsel for the assessee vehemently argues that the assessment order is neither erroneous nor prejudicial to the interest of revenue and drew our attention to the copy of assessing officer's order-sheet of the 143(3) assessment in which assessing officer had given proper reasons for selection of case in scrutiny. Hearings during the course of assessment proceedings took place on 7 occasions and on eighth occasion the assessment order was passed. On 20th April 2010 the assessee was directed to file th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m) Details of share application money received from Bestech India Pvt. Ltd. 3.1. Thus, the record stands testimony to the fact that Assessing officer made all relevant inquiries, which were all duly complied by the assessee to assessing officer's satisfaction. The assessee is a group of company, all other group entities are assessed by the same officer as they are assessed under Central Circle-II, Faridabad. The assessment in question was thus framed in accordance with law by due process of inquiry, verification and discussions. It is trite law that CIT may have another view about inquiries but it does not make the method of Assessing officer's enquiries and findings as erroneous or prejudicial to the interest of revenue. Assessmentmay have been framed by a process which may differ from CIT's perception but that is not material as the assessing officer being a statutory quasi judicial authority, if he has framed an assessment by adopting a particular procedure of verification of accounts, calling for inquiries i.e. questionnaire and satisfying himself about the inquiries after verification of record and accounts. The assessment by such process by no stretch of imagination can be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... already submitted details of opening and closing stock vide clause no. 3 of letter dated NIL and the same were verified by the learned assessing officer at the time of assessment. The figure of decrease in stock of Rs. 61,48,979/- has been arrived at by deducting opening stock from closing stock i.e. (Rs.2,26,394.87 minus Rs. 63,75,373.98). Moreover, calculation of decrease in stock.' has also been given in Schedule II to the Audited Balance Sheet at the time of assessment. All these aspects were explained to assessing officer. f) The assessee company has no debtors. The figure of Sundry Debtors of Rs.( - )7,56,859.67 represent the advance received from the flat buyers. The detail of sundry debtors has already been given in schedule 6 of audited balance sheet which was already submitted and same was verified by the learned assessing officer with reference to the books of accounts and vouchers. g) That assessee company has already submitted with assessing officer necessary detail of advances and same was verified by the learned assessing officer from respective documentary evidences and books of accounts produced. As regards, advance of Rs. 1,60,44,967/- given to Bestech India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted on this account also in respect of advances given to Bestect India Pvt. Ltd. The CIT's order is belied on the ground that adverse inferences are wrongly drawn inasmuch as:- (a) Assessing officer did consider the factual position and made proper inquiries and investigations in respect of the items mentioned by CIT since there was no failure to make such inquiries the order cannot be erroneous and prejudicial to the interests of revenue. Reliance is placed on the Hon'ble Supreme Court judgment in the case of Malabar Industrial Co. Vs. CIT 243 ITR 83 (SC) for the proposition that if the view taken by the assessing officer is one of the possible and tenable view then revisional power cannot be exercised merely because CIT has another view on the matter. (b) CIT Vs. Sunbeam Auto Ltd. 332 ITR 167 (Del): for the proposition that there can be fresh process of roving or fishing inquiry by CIT without appreciating that the inquiries were already conducted by assessing officer. (c) CIT Vs. Max India Ltd. 295 ITR 282 (SC) - for the proposition that the prima facie error alleged to be shown by CIT does not exist and the inquiries and order of assessing officer are on all fours, no rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... non-violation of section 13 and assessee's objects being charitable purpose in terms of section 2(15). In our considered view, the assessing officer has given findings on all the relevant aspects with further findings about application of mind i.e. having gone through the accounts record and activities in sum and substance. There is no particular proforma which is provided by any provision of the I.T. Act. DIT(E) has taken some adverse view on the short order and the fact that it was completed in one or two hearings. In our considered view these observations cannot be a basis for holding the assessment order as erroneous and prejudicial to the interests of revenue. The assessing officer is a quasi judicial authority and his findings on fact which are in accordance with law, cannot be called erroneous in the eyes of the law. The order may be short or long. Similarly, the assessment is completed in one or more than one hearing is the discretion of the assessing officer and there is no legal bar on that. There is no error in respect of non-consideration of sec. 10(23C)(iiiab) as the assessing officer has only applied section 11 12 and held the assessee's case covered thereunder. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... item. What emerges from the order-sheet and record is that assessing officer conducted inquiry on all these aspects by way of questionnaire and notices u/s 142(1). In the assessment order there are clear finding of satisfaction by assessing officer that all the compliance was made and he was satisfied about the information provided by the assessee by way of account books, record and the compliance to the questionnaire. Thus, the allegation of CIT is not sustainable that it is a case of non-inquiry or lack of inquiry. We may hasten to add it with the perusal of the order-sheet and voluminous compliance filed by the assessee which is placed on paper book, clearly suggest that proper inquiries were made which are duly complied on the indicated issues. Though ld. DR has referred to the short and cryptic order of assessing officer, CIT no where refers to the short order. We may add that it is not the shortness of the order which makes it tenable or not, rather there are contents of the order about clear findings of the assessing officer on the record which will make the order tenable. In our considered view, assessing officer has conducted proper inquiries, which are considered and a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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