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TMI Blog2014 (1) TMI 641X X X X Extracts X X X X X X X X Extracts X X X X ..... cer by the Statute – Partly allowed in favour of assessee. - I.T.A. No. 316/Coch/2010 - - - Dated:- 8-2-2013 - Shri N. R. S. Ganesan, JM And B. R. Baskaran, AM,JJ. For the Petitioner : Shri V. Sathyanarayanan, FCA For the Respondents : Smt. Susan George, Sr. D.R Smt. Vijayaprabha, Junior D. R ORDER Per B. R. Baskaran, Accountant Member :- The appeal of the assessee is directed against the order dated 15-03-2010 passed by the Ld. CIT, Kochi dated 15-03-2010 and it relates to the assessment year 2005-06. 2. The assessee is challenging the validity of the revision order passed by the Ld. CIT. 3. The facts relating to the case are stated in brief. The assessment in the hands of the assessee for the year under considera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s as well as Employers contribution towards PF for the month of March 2005 which were not paid u/s. 36(i)(va)/43B of the Act. vii) The Assessing Officer has omitted to include the receipts as per TDS certificates filed. It was also not verified by the Assessing Officer whether the entire miscellaneous receipts of Rs. 31,14,449/- accounted represents receipts as per TDS certificates. viii) The Assessing Officer has omitted to disallow proportionate expenditure on exempted income (dividend) u/s. 14A of the Act. Similarly, income from sale of investment is computed under capital gains and, therefore, expenses attributable to acquisition of the investments cannot be deducted while computing the income from business. ix) According to the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so far as it is prejudicial to the interests of the Revenue". This provision has been interpreted by the Supreme Court in several judgments to which it is now necessary to turn. In Malabar Industrial Co. Ltd. v. CIT [2000] 243 ITR 83, the Supreme Court held that the provision "cannot be invoked to correct each and every type of mistake or error committed by the Assessing Officer" and "it is only when an order is erroneous that the section will be attracted". The Supreme Court held that an incorrect assumption of fact or an incorrect application of law will satisfy the requirement of the order being erroneous. An order passed in violation of the principles of natural justice or without application of mind, would be an order falling in that c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble Supreme Court has held in the case of Malabar Industrial Company Ltd (supra) that the assessment order passed without application of mind will be rendered erroneous. 5. The Hon'ble Delhi High Court in the case of Toyoto Motor Corporation (306 ITR 49) has held that the proceedings before the AO are quasi judicial proceeding and a decision taken by the AO in this regard must be supported by reasons. Accordingly, the Delhi High Court upheld the revision order passed by Ld CIT u/s 263 of the Act. The said order of the Delhi High court has been approved by the Hon'ble Supreme Court in the case of Toyoto Motor Corporation (306 ITR 52). 6. The issues pointed out by Ld CIT would have implication on the tax computation in which case the impu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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