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TMI Blog2014 (2) TMI 177X X X X Extracts X X X X X X X X Extracts X X X X ..... is mind to the relevant material and facts. There are small labourers or machine repairers who were hired under emergent conditions and payments made to them and contended that these are expenses which are really incurred - there is no application of mind on the part of the assessing authority - he is justified in issuing a direction to the assessing authority to redo the matter afresh and pass appropriate orders in accordance with law – there is no reason to interfere with the order passed by the Commissioner of Income tax - The matter is remitted back to the assessing authority for fresh adjudication – Decided partly in favour of Revenue. - ITA NO. - 5001/2012 - - - Dated:- 19-6-2013 - PATIL N. K. AND MANOHAR B., JJ For the Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to the assessee in respect of labour charges, felting charges and moulding charges whereas, prima facie, no examination was done by the Assessing Officer ? (iv) Whether the Income-tax Appellate Tribunal is right in law and on facts in allowing the deduction claimed on account of keyman insurance premium in the name of partner which is against the requirement of the keyman insurance scheme of LIC of India ? (v) Whether the Income-tax Appellate Tribunal is right in law and on facts not considering the decision relied upon by the Commissioner of Income-tax in regard to premium paid on insurance policy and life of partner in the case of CIT v. Khodidas Motiram Panchal [1986] 161 ITR 99 (Guj) ? 2. The brief facts of the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rsons to whom these payments have been made. The assessee's representative stated that these are small labourers or machine repairers who were hired under emergent conditions and payments were made to them and contended that these are expenses really incurred. However, it was proposed to disallow a sum of Rs. 2 lakhs out of these payments made for which the assessee's representative agreed, vide their letter dated October 27, 2008. Considering the above observations, the assessment was completed and the Assistant Commissioner of Income-tax, Circle-1, Belgaum passed the order dated November 27, 2008. Be that as it may, the Commissioner of Income-tax having exercised his revisional powers under section 263 of the Income-tax Act, 1961 (for sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... satisfied with the order passed by the Commissioner of Income-tax under section 263 of the Act, the respondent-assessee has filed I. T. A. No. 138 (PNJ)/ 2011 (assessment year 2006-07) on the file of the Income-tax Appellate Tribunal, Panaji Bench, Panaji. The said matter had come up for consideration before the Tribunal and the Tribunal pronounced the order on August 3, 2011, holding that the Assessing Officer adopted possible view permissible in law but the Commissioner did not agree with it and it cannot be treated as an erroneous order prejudicial to the interests of the Revenue. Therefore, the Tribunal set aside the order of the Commissioner of Income-tax and allowed the appeal filed by the assessee. Being aggrieved by the order passe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... visions of section 263 of the Act. The suo motu powers exercised by the Commissioner is uncalled for when the Assessing Officer has assigned reasons at paragraph 3 of the assessment order by specifically stating that the assessee is carrying on business of manufacturer of CI castings and alloys deriving receipts on labour charges and also effecting own sales. As the turnover during the year has exceeded Rs. 40 lakhs, the assessee's books of account have been duly audited by the chartered accountant and reporting Form No. 3CB and Form No. 3CD have been filed along with return of income after going through the same and after hearing the authorised representative of the assessee. The representative has pointed out to the effect that there are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that in fact the authorised representative of the assessee has stated that there are small labourers or machine repairers who were hired under emergent conditions and payments made to them and contended that these are expenses which are really incurred. However, he has not produced any vouchers, receipts or bills to show the amount incurred. This shows that there is no application of mind on the part of the assessing authority. This fact has been rightly taken note by the 4 points framed by the Commissioner of Income-tax and that the 4 points have not been considered by the assessing authority. Therefore, he is justified in issuing a direction to the assessing authority to redo the matter afresh and pass appropriate orders in accordance wit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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