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TMI Blog2014 (5) TMI 939X X X X Extracts X X X X X X X X Extracts X X X X ..... rt contractors for which the assessee is liable to deduct TDS under Section 194C of the I.T. Act. After giving concession for those payment where the single payment does not exceed Rs.20,000 and Rs.50,000 in an aggregate in year for which 194C is not attracted amounting to Rs.12,34,540/- and on the remaining amount of Rs.1,20,52,564/- the assessee is liable to deduct TDS under section 194C. This amount of Rs.1,20,52,564/- represents payment to transport contractors. However, as information from all the parties were not available at time of assessment and inspection is done on random basis on selected parties. Considering the above I am disallowing on estimate basis 20% of the balance i.e. Rs.1,20,52,564/- amounting to Rs.24,10,512/- under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perusal of the order passed u/s. 263 of the I.T. Act, 1961 clearly shows that the Ld. CIT has directed the re-examination and re-verification of an issue which is already being verified and assessed by the AO. The powers u/s. 263 of the I.T. Act, 1961 cannot be used for directing a re-verification. Once an opinion has been formed by the AO the Ld. CIT by taking recourse to the powers u/s. 263 of the I.T. Act, 1961 cannot take a stand that the examination done by the AO was not adequate. Adequate enquiry is a subjective issue and just because the Ld. CIT feels that the AO should have done more enquiries does not make it a case for invoking the powers u/s. 263 of the I.T. Act, 1961. This view of ours also finds support from the decision of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g officer to make the assessment afresh by re-examining and reconsidering the facts and circumstances of this case, which the CIT was entitled to do under section 263 itself. She drew our attention to Section 263, which provides as follows: "263(1) The Commissioner may call for and examine the record of any proceeding under this Act, and if he considers that any order passed therein by the [Assessing] Officer is erroneous in so far as it is prejudicial to the interest of the revenue, he may, after giving the assessee an opportunity of being heard and after making or causing to be made such inquiry as he deems necessary, pass such order thereon as the circumstances of the case justified, including an order enhancing or modifying the assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... circumstances on each case. The CIT had in fact by the order under Section 263 remanded the matter directing the Assessing Officer to make the assessment afresh which the CIT was entitled to do. The learned Tribunal erred in not taking into account the order passed by the CIT in its entirety. The CIT has demonstrated reasons as to why is the order of the Assessing Officer erroneous and prejudicial to the interest of the revenue. It is the substance and not the form of the order which is material. We are as such unable to agree with the views expressed by the learned Tribunal. The apprehension expressed by Mr. Majumdar, learned advocate for the assessee, that in the event the order of the learned Tribunal is set aside, the pending appeal by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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