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TMI Blog2016 (12) TMI 1400X X X X Extracts X X X X X X X X Extracts X X X X ..... er passed by the A.O. is erroneous in so far as it is prejudicial to the interest of the revenue and accordingly the CIT has rightly assumed jurisdiction to revise the assessment order. Hence, we uphold the order passed by the CIT u/s 263 of the Act and set aside the assessment order passed by the A.O. u/s 143(3) of the Act. - Decided against assessee. - I.T.A.No.284/Vizag/2014 - - - Dated:- 23-12-2016 - SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER For The Appellant : Shri S. Rama Rao, AR For The Respondent : Shri G. Guruswamy, DR ORDER PER G. MANJUNATHA, Accountant Member: This appeal filed by the assessee is directed against order of the CIT, Rajahmundry dated 27.3.2014 u/s 263 of the Act, for the assessment year 2009-10. 2. The brief facts of the case are that the assessee is a partnership firm engaged in the business of execution of civil works filed its return of income for the assessment year 2009-10 on 29.9.2009 declaring total income of ₹ 16,35,190/-. The case has been selected for scrutiny through CASS and accordingly, notices u/s 143(2) 142(1) of the Income Tax Act, 1961 (hereinafter called as 'th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed a written submission vide letter dated 20.11.2013 and submitted that the assessment order passed by the A.O. is neither erroneous nor prejudicial to the interest of the revenue, as the A.O. has verified all issues pointed out in the show cause notice at the time of completion of assessment. The assessee further submitted that the A.O. has issued detailed show cause notice calling for books of accounts and other details and the assessee has submitted books of accounts, bills vouchers, bank statements and other details called for by the A.O. The A.O. after satisfied with the explanations furnished by the assessee has completed the assessment by making certain adhoc disallowances which cannot be termed as erroneous in so far as it is prejudicial to the interest of the revenue. The assessee further submitted that in so far as, net profit is concerned, the assessee has admitted low net profit because of high depreciation and interest and the fact of which was brought to the notice of the A.O. Similarly, as regards sub contract payment, the assessee has furnished all the details along with name and address of the sub contractors and also furnished necessary proof of deduction of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... errors committed by the A.O. With these observations, set aside the assessment order passed by the A.O. u/s 143(3) of the Act and directed the A.O. to pass consequential order within the time allowed and after giving opportunity of being heard to the assessee. Aggrieved by the CIT order, the assessee is in appeal before us. 6. The Ld. A.R. for the assessee submitted that the CIT has erred in assuming jurisdiction u/s 263 of the Act, as order passed by the A.O. is neither erroneous nor prejudicial to the interest of the revenue. The Ld. A.R. further submitted that the A.O. has examined all the issues pointed out by the CIT right from verification of low net profit to loss incurred from hiring of plant and machinery. The assessee has furnished all the details at the time of assessment proceedings and the A.O. after satisfied with the explanations of the assessee has completed assessment by making certain adhoc disallowances. The A.R. further submitted that the CIT was incorrect in assuming jurisdiction to revise the assessment order by stating that enquiries conducted by the A.O. is inadequate and the A.O. has not applied his mind, but the fact is that the A.O. has completed as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... risdiction u/s 263 of the Act, therefore, the question of revision of assessment order comes only when assessment order is erroneous in so far as it is prejudicial to the interest of the revenue. A particular assessment order is erroneous or not and which caused prejudice to the interest of the revenue has to be decided based on the facts and circumstances of each case. Whether the A.O. has verified particular issue or not while completing the assessment or had he applied his mind while adjudicating particular issue in the light of the provisions of the Act is to be decided based on the facts available on records, such as assessment order and details submitted by the assessee. The A.O. being quasi judicial authority expected to exercise his power judicially while adjudicating the issue at the time of assessment. If the A.O. passed an erroneous order, not only revenue, sometimes the assessee will also land in problem, so that the law provides for revision of orders suo-moto by the Commissioner in case revenue is prejudiced and assessee can file application u/s 264 of the Act to correct the mistakes committed by the A.O., therefore, the law is equally applicable for both sides who ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. We find merits in the findings of the CIT, for the reason that although the assessee claims to have furnished all the details on the issues on which the CIT questioned in his proceedings, the assessee failed to prove the same with necessary evidences. We further observed that on perusal of the assessment records and also details filed by the assessee, the assessing officer had discussed none of the issues pointed out by the CIT. We also observed that the assessment order passed by the A.O. is brief and cryptic and the A.O. neither discussed the issue pointed out by the CIT in the assessment proceedings nor obtained any information on which he placed his reliance before accepting the claim of the assessee. Therefore, we are of the considered view that the assessment order passed by the A.O. is erroneous in so far as it is prejudicial to the interest of the revenue and accordingly the CIT has rightly assumed jurisdiction to revise the assessment order. Hence, we uphold the order passed by the CIT u/s 263 of the Act and set aside the assessment order passed by the A.O. u/s 143(3) of the Act. 11. In the result, the appeal filed by the assessee is dismissed . The above order w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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