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TMI Blog2012 (12) TMI 1032X X X X Extracts X X X X X X X X Extracts X X X X ..... Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin-top:0in; mso-para-margin-right:0in; mso-para-margin-bottom:10.0pt; mso-para-margin-left:0in; line-height:115%; mso-pagination:widow-orphan; font-size:11.0pt; mso-bidi-font-size:10.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} HARI OM MARATHA, JUDICIAL MEMBER AND N.K. SAINI, ACCOUNTANT MEMBER For the Appellant : Shailendra Baradia For the Respondent : Subhash Chandra ORDER Hari Om Maratha, Judicial Member - This appeal of the assessee for Assessment year 2009-10 is directed against the order of the ld. CIT, Ajmer dated 28/03/2012 passed u/s 263 of the Income Tax Act, 1961 ('the Act for short"). 2. Briefly stated, the facts of the case are that the assessee-firm filed its re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een vastly examined and analyzed by various Courts including that of Hon'ble Apex Court. The revisional power conferred on the CIT vide section 263 is of vide amplitude. It enables the CIT to call for and examine the records of any proceeding under the Act. It empowers the CIT to make or cause to be made such an enquiry as he deems necessary in order to find out if any order passed by Assessing Officer is erroneous in so far as it is prejudicial to the interests of the Revenue. The only limitation on his powers is that he must have some material(s) which would enable him to form a prima facie opinion that the order passed by the Assessing Officer is erroneous in so far as it is prejudicial to the interest of the Revenue. Once he comes to the above conclusion on the basis of the 'material' that the order of the Assessing Officer is erroneous and also prejudicial to the interests of the Revenue, the CIT is empowered to pass an order as the circumstances of the case may warrant. He may pass an order enhancing the assessment or he may modify the assessment. He is also empowered to cancel the assessment and direct to frame a fresh assessment. He is empowered to take recourse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e in place of the income estimated by the Assessing Officer. (vii) 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. 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 be erroneous simply because in his order he does not make an elaborate discussion in that regard. 6. We have found that the ld. CIT issued a show cause notice dated 06.03.2012 on the above issues to the assessee-firm. A detailed reply dated 20.03.2012 given by the assessee reads as under:- "1. Difference in Transportation Receipts as per TDS detail and as per Profit & Loss Account: It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in three part: Tyre & Tube (New Tyre purchases expenses) Tyre &Tube (Tyre Retreading Expenses) Tyre and Retreading (Old Tyre purchases and Retreading Expenses) Tyre & Tube (New Tyre Purchases Expenses) This type of expenses was purchase of new Tyre & Tube for running heavy vehicle by the assessee. New Tyre & Tubes purchased as per requirement so there was no closing stock. This is purchased and consumed item. Tyre & Tube (Tyre Retreading Expenses) - This type of expenses was tyre retreading expenses. When a tyre depreciated or damaged then it retreaded. Tyre retreading means, Tyre Retreading is a technology, where the old tyres are made serviceable by removing worn out and damaged treads (rubber belts) and replacing it with new treads. Similar to the new tyres, the treated tyres can be very well used on all vehicles, irrespective of light or heavy vehicles. Vihen retreaded tyre damaged or fully depreciated, it has negligible scrap value. Tyre & Retreading (Old Tyre Purchases & Retreading Expenses) - This type of expenses was old tyre purchases & retreading expenses. Assessee purchased old tyre 'and retreaded them, for the old tyres was made serviceable similar to the n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . After considering rival submissions in the light of the legal position on the subject of revision, we have found that the A.O. has examined each and every of the above issues, as per law. The order of ld. CIT is directory in the nature which is based on his own view as against the taken by the A.O. We don't find any lack of inquiry or even a case of inadequate inquiry. Under section 263, the commissioner cannot substitute his own view. He has not given any valid reason as to how the assessment order is erroneous. He has simply stated that the assessment order dated 7.1.2011 is erroneous and prejudicial to the interest of the revenue to that extent. The intention of this section is somewhat different. In case the A.O. has not made enquiries and taken an erroneous decision regarding an item of income, only then the order can be said to be erroneous on that point. In case the A.O. takes a possible view qua a claim made and the ld. CIT takes another possible view, the order cannot be said to be erroneous. 9. Accordingly, we rather, think the order of the ld. CIT is not correct. He has transgressed his revisionary powers as if he is sitting in appeal. His powers are delineated by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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