9911796707
TMI Blog2015 (4) TMI 508X X X X Extracts X X X X X X X X Extracts X X X X ..... hich is not forming part of the show cause notice, has been referred and conclusion thereon is rendered. That is in relation to alleged system of accounting adopted by the Assessee, which is stated to be the mercantile system and that is why there is disclosure of lesser income. Nowhere in the show cause notice any system of accounting has been referred nor disclosure of any lesser income over and above what has been referred by us. In such circumstances, the Tribunal rightly came to a conclusion that there is a vital discrepancy in the show cause notice issued under section 263 of the Income Tax Act and the final order of the Commissioner and impugned in the Appeal before the Tribunal. This discrepancy cannot be termed as technical. If ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ₹ 1,98,08,432/- escaping assessment. However, the Tribunal found that the Commissioner did not make any observation nor rendered any finding in its order under section 263 of the IT Act on this subject or issue. 4. The Tribunal found that there was no allegation in the show cause notice about the system of accounting and the Assessee receiving a sum of ₹ 91,41,31,695/- and therefore, disclosing lesser income. However, the show cause notice was silent on this and yet in the final order, these observations or findings have been rendered. That would vitiate the final order of the Commissioner under section 263 of the IT Act. 5. Mr. Malhotra appearing for the Revenue submits that the Tribunal has taken a hyper technical vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8,08,432/-. 7. Then, the show cause notice alleges debiting of expenses on account of stationary and auditor's remuneration to the extent of ₹ 14,725/-, which has not been examined by the Assessing Officer. It is only on these two grounds that the Assessing Officer's order was proposed to be set aside by terming it as erroneous and prejudicial to the interest of the Revenue. However, in the final order of the Commissioner, something which is not forming part of the show cause notice, has been referred and conclusion thereon is rendered. That is in relation to alleged system of accounting adopted by the Assessee, which is stated to be the mercantile system and that is why there is disclosure of lesser income. Nowhere in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
