9911796707
TMI Blog2016 (10) TMI 216X X X X Extracts X X X X X X X X Extracts X X X X ..... r under its supervisionary jurisdiction noticed that the assessee has filed return of income on 29.10.2009 showing income of Rs. 28,72,910/- and thereafter a revised return was filed on 14.10.2010 declaring total income of Rs. 95,55,430/-. The Assessing Officer, while framing the assessment under section 143(3) based on revised return, made certain additions on account of creditors appearing in the Balance Sheet of the assessee to the tune of Rs. 2,20,72,000/- in aggregate. In respect of such addition, the Assessing Officer noted that amount of Rs. 25,72,000/- and Rs. 75,50,000/- written back towards outstanding creditors as offered by the assessee is added to the total income of the assessee. The assessee also came forward to offer another amount of Rs. 1,19,50,000/- by following Percentage Completion Method in respect of pending advances of the creditors looking to the fact that the deals in respect of pending advances are in an advance stage of completion. The Assessing Officer in pursuance of the offer added this amount also to the total income of the assessee. No penalty proceedings under section 271(1)(c) of the Act were initiated in respect of various additions made to the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g WIP etc., which have not been examined by the AO properly. 4. In addition to the above it is further noted that the break-up of advances against land received appearing on the Liability side of Rs. 6,21,22,000/- has been given comprising of 45 persons. Confirmations of approx 10 persons have been given before the AO as per the records available. Even these confirmations as can been seen from the reasons given below are not tallying with the Closing Balance shown in the break up. These are as under : 1. P K Patel - confirmation is given of Rs. 12,50,000/-, where as liability in balance sheet is shown at Rs. 50,00,000/-. 2 . Dinesh Patel - Confirmation for purchase of land, but neither appearing in debtor or creditor list. 3. Naresh Patel - Confirmation given of 12.50 lacs but in the list it is only 10 lacs. 4. Sunil Patel - Confirmation given for purchase of land of Rs. 12.50 lacs, neither appearing in debtor list nor in creditors list. 5. Shantaram Kadam - confirmation is given for loan given to M/s N. B. Bhondave of Rs. 43,57,000/- and it is also stated that he is also getting back the amount in EMI's. The same is shown as liability in the Balance sheet and not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. The learned CIT-V, Pune erred in law in setting aside the assessment order u/s 143(3) assuming the same as incomplete and erroneous as it was completed in haste and without examining and dealing with the relevant details apparent from record. The learned CIT - V, Pune erred in law and on facts in directing learned AO to re-do the assessment in the light of discussions mentioned in the order u/s 263 of the ITA, 1961. 3. The learned CIT -V, Pune erred in law and on facts in directing the learned AO to initiate penalty proceedings u/s 271(1)(c) of the ITA, 1961 for furnishing inaccurate particulars of income. 4. The learned CIT-V, Pune erred in law and on facts in not appreciating the fact that, appellant has offered various additions to returned income voluntarily and in good faith merely to buy piece of mind and avoid litigations. 5. The appellant craves leave to add / modify / alter / delete all / any of the grounds of appeal." 6. The Ld. Authorized Representative (AR) for the assessee Shri Kishor Phadke at the outset submitted that the assessment order has already been reframed in terms of the directions under section 263 vide order dated 19.03.2015. However, the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rves to be set-aside. 7. The Ld. Departmental Representative (DR) for the Revenue Shri A. S. Singh, on the other hand, relied upon the decision of the Hon'ble Allahabad High Court in the case of Associated Contractors Corporation (supra) as referred to by the Commissioner and submitted that the impugned direction of the Commissioner to consider the initiation of penalty proceedings while setting-aside the assessment order is within the bounds of law and therefore cannot be assailed. 8. We have carefully heard the rival submissions and perused the record. In exercise of power conferred under section 263 of the Act, the Commissioner has set-aside the assessment for framing it afresh inter-alia on the ground that the Assessing Officer has failed to initiate penalty proceedings under section 271(1)(c) of the Act on the addition of Rs. 2,20,72,000/- to the total income. The other ground for invoking power under section 263 namely assessment done in haste has not been seriously challenged on behalf of the assessee. Accordingly, the limited question to be decided in the present case is whether the Commissioner is empowered under section 263 to set-aside the assessment where the Assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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