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TMI Blog2016 (5) TMI 417X X X X Extracts X X X X X X X X Extracts X X X X ..... ration. There is no quarrel that complete lack of inquiry on the part of the AO renders the order of the AO erroneous and so far as prejudicial to the interest of the revenue. Thus, in the facts and circumstances of the case, we find that when there is a lack of inquiry on the part of the AO as well as non-application of mind while passing assessment order and particularly on the issue which is the subject matter of the revision proceedings, then the CIT was justified in invoking the jurisdiction u/s 263 of the Act The CIT has not given any concluding finding on the allowability of the said expenditure for want of complete details and record therefore, the issue was remitted to the AO with the direction to be decided in accordance with l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the fact that these expenses were crystallized during the Previous Year relevant to assessment year 2009-10. 3.2.Learned Commissioner of Income Tax (LTU) erred in disallowing the prior period expenditure while taxing the prior period income included by the appellant in the taxable income. 3.3. Learned Commissioner of Income Tax (LTU) erred in not following the ratio laid down by the Tribunals. For all these and other grounds which may be urged at the time of hearing, the appellant prays that its appeal be allowed. 3. The assessment in this case was completed u/s 143(3) on 30/8/2011 whereby the taxable income of the assessee was determined at ₹ 1205,90,31,409/-. Subsequently, on perusal of the assessment records, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that in order to decide the issue whether prior period or not one has to go into the nature of the expenditure and then decide the allowability of the expenditure. He further observed that in order to verify genuineness of the expenditure claimed, it is necessary that the assessee produce complete details, which in the present case, were not furnished. Rather, the assessee expressed its inability to produce the same even during the proceedings before the CIT. Accordingly, the CIT has held that the order passed by the AO dated 30/4/2011 is erroneous in so far as it is prejudicial to the interests of the revenue since no proper inquiry has been made on this issue. Accordingly, the issue was remanded to the file of the AO to verify the genuine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion Ltd. 2015(1)TMI 105 ITAT Lucknow, v. Winsome Yarns Ltd. 2014(12) TMI 433 ITAT Chandigarh. The learned AR of the assessee submitted that in the case of UP Projects Corporation Ltd (Supra), Lucknow bench of this Tribunal has observed that the addition made by the AO on account of prior period expenses is not justified when the assessee has offered prior period income also. It was also held that even if the prior period income offered to tax by the assessee and until the differential amount has to be excluded. When the prior period income is more than prior period expenses and the net income property is offered to tax no addition is justified. 6. On the other hand, the learned departmental representative has submitted tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see has also offered prior period income, then the prior period expenditure cannot be disallowed. We find that the AO has not taken up this issue for examination and verification and therefore, no finding has been given on this issue. When this issue was not taken up for scrutiny and examination by the AO then the contentions raised by the assessee before the CIT in revision proceedings are merely the submissions without verification of the fact from the examination of the record. It is admitted by the assessee that complete details of the expenditure were not furnished before the AO as well as before the CIT on the ground that it is a huge/large number of details which is not possible to be furnished. We find that the CIT had not given a c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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