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TMI Blog2015 (5) TMI 813X X X X Extracts X X X X X X X X Extracts X X X X ..... [2009 (9) TMI 633 - Delhi High Court] and CIT Vs. Development Bank Ltd [2010 (2) TMI 161 - BOMBAY HIGH COURT] we set aside the impugned order of the Commissioner of Income Tax - Decided in favour of assesse. - ITA No.1378/Mds/2014 - - - Dated:- 20-5-2015 - SHRI A.MOHAN ALANKAMONY AND SHRI CHALLA NAGENDRA PRASAD, JJ. For The Appellant : Mr. Anil Nayar, C.A. For The Respondent : Mr. N.Rengaraj, CIT ORDER Per Challa Nagendra Prasad, JM: This appeal is filed by the assessee against the order of the Commissioner of Income Tax, Chennai-X, dated 26.03.2014 passed under section 263 of the Act for the assessment year 2009-10. The assessee in its appeal challenging the order of the Commissioner of Income Tax in holding that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee submitted that since the entire documents in support of the working furnished to the Assessing Officer during the scrutiny assessment proceedings were considered by the Assessing Officer while passing the assessment order, no error had occurred in the order of the Assessing Officer which renders it erroneous and prejudicial to the interests of the Revenue. However, Commissioner of Income Tax without appreciating the submissions of the assessee passed order under section 263 of the Act holding that assessment order passed by the Assessing Officer under section 143(3) of the Act is erroneous and prejudicial to the interests of the Revenue as the Assessing Officer, according to him, has not made sufficient enquiries and has not properly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dexed cost of acquisition explaining how the assessee arrived at the indexed cost of acquisition was also placed before the Assessing Officer. Therefore, counsel submits that all the details were placed before the Assessing Officer as called for and on examination of all these details, assessment was completed by the Assessing Officer accepting the indexed cost of acquisition for arriving at the capital gains. Therefore, such order cannot be said to be erroneous and prejudicial to the interests of the Revenue. Counsel further submits that Commissioner of Income Tax was of the view that there is no proper enquiry by the Assessing Officer and therefore assessment order is erroneous. Referring to the judgement of Hon ble Delhi High Court in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assessing Officer in the course of assessment proceedings called for details regarding computation of long term capital gains, details of sale of property, indexed cost of acquisition, copy of sale deed etc. The assessee submitted all the information by letters dated 12.10.2011 and 14.09.2011 relating to computation of capital gains including statement showing indexed cost of acquisition in computing the capital gains and it is very much evident from the assessment order that there is a finding given by the Assessing Officer that bank statements and other documents were called for including details of investments and expenditure made by the assessee and the assessee has furnished all these details. The Assessing Officer completed the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he CIT to pass orders under s. 263, merely because he has different opinion in the matter. It is only in cases of lack of inquiry that such a course of action would be open. The AO had called for explanation on this very item from the assessee and the assessee had furnished his explanation vide letter dt. 26th sept., 2002. This fact is even taken note of by the CIT himself in para 3 of his order. This clearly shows that the AO had undertaken the exercise of examining as to whether the expenditure incurred by the assessee in the replacement of dyes arid tools is to be . treated as revenue expenditure or not. It appears that since the AO was satisfied-with the aforesaid explanation, he accepted the same. The CIT in his impugned order even a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee had similarly supplied to the A'O details of the current investments in response to the query of the AO. In addition, it would also have to be noted that, in pursuance of, the order passed by the CIT under s. 263, an assessment order came to be passed on 28th Dec., 2007. During the course of the assessment order, the AO noted that the assessee has explained depreciation claimed against the investments held and classified as stock-in-trade. The explanation of the assessee in this connection was accepted and the AO came to the conclusion that depreciation of ₹ 622.39 lakhs has been. claimed towards investments held and classified as stock-intrade. In the absence of any tangible material to the contrary, the CIT could not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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