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TMI Blog2015 (10) TMI 305X X X X Extracts X X X X X X X X Extracts X X X X ..... . The assessment was completed u/s 143(3) of the Act on 31.10.2011, at a total income of Rs. 9,66,500/-. The A.O. has made lump sum addition of Rs. 50,000/- involving section 145(3). He has added a sum of Rs. 19,120/- by apply interest of 8% by estimating interest income. On National Saving Certificate (NSCs) worth Rs. 2,39,000/-. The assessee is engaged in the business of a civil contractor. Subsequently, the commissioner called for the records of this assessment order and noticed that the assessee has debited rent of Rs. 3,05,800/- for mixture and Rs. 3,10,000/- in the profit and loss account relating to A.Y. 2009-10 but has not deducted tax at source in terms of Sec. 194I and S. 40(a)(ia) of the Act although this provision applied to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by erred in setting aside the assessment to be made afresh by ITO. He also erred in acquiring jurisdiction u/s 263, when the impugned assessment made u/s 143(3) was neither erroneous nor prejudicial to the interest of Revenue in any manner. The order was framed after due and diligent enquiry by the ld. Assessing Officer in relation to payment of hire charges of Rs. 6,15,800/- on mixtures and rollers." 2.2 Before us both the parties have reiterated their earlier stand. We have carefully considered the oral as well as written submissions made before us. We have also perused carefully the entire evidences available on record. It is trite that an order can be revised only and only if twin conditions of 'error in the order' and 'prejudice cause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd has to satisfy the need of fairness in administrative action and fair play with due respect to the principle of audi alteram partem as envisaged in the Constitution of India as well as in section 263. An order can be treated as 'erroneous' if it was passed in utter ignorance or in violation of any law; or passed without taking into consideration all the relevant facts or by taking into consideration irrelevant facts. The 'prejudice' that is contemplated under section 263 is the prejudice to the Income Tax administration as a whole. The revision has to be done for the purpose of setting right distortions and prejudices caused to the Revenue in the above context. The fundamental principles which emerge from the several cases regarding the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ii) The Assessing Officer exercise quasi-judicial power vested in him and if he exercise such power in accordance with law and arrives as a conclusion, such conclusion cannot be termed to be erroneous simply because the CIT does not feel satisfied with the conclusion. (viii) The CIT, before exercising his jurisdiction under section 263, must have material on record to arrive at a satisfaction. (ix) If the Assessing Officer has made enquiries during the course of assessment proceedings on the relevant issues and the assessee has given detailed explanation be a letter in writing and the Assessing Officer allowed the claim on being satisfied with the explanation of the assessee, the decision of the Assessing Officer cannot be held to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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