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TMI Blog2017 (1) TMI 896X X X X Extracts X X X X X X X X Extracts X X X X ..... o reason mentioned in the notice issued u/s 263 of the Act for treating the order of AO as erroneous and prejudicial to the interest of the revenue. In this case, we find that it is a mandatory requirement for the Ld.CIT to incorporate the reasons for treating the order of AO as erroneous and prejudicial to the interest of the revenue. In holding so, we rely upon the decision of the Hon’ble Madhya Pradesh High Court in the case of CIT vs Sattandas Mohandas Sidhi [1997 (6) TMI 13 - MADHYA PRADESH High Court] as held the notice should contain reasons as to how the order is prejudicial to the Revenue - Decided in favour of assessee - I.T.A. No. 820/Kol /2012 - - - Dated:- 11-1-2017 - Shri Waseem Ahmed, Accountant Member And Shri S. S. Visw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has resulted in erroneous order and untenable conclusion. Provisions of section 115WE (3) of the I.T. Act, 1961 have been misconstrued and misapplied in the matter. 4. That the impugned order is without jurisdiction, untenable and contrary to law. 2. At the outset, the ld. AR has challenged the proceedings initiated u/s 263 of the Act on the ground that no proper and legal notice was issued by the Commissioner of Income tax. The ld. AR submitted that notice for initiation of proceedings u/s 263 of the Act was not issued by the proper authority. The notice was issued and signed by D.C.I.T., HQrs-11, Kolkata vide No.CIT- 11/Kol/263/AAFFM2988Q/11-12/1629 dated 11th July, 2011 which is placed at page 1 of the paper book. As per the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that any order passed therein by the Assessing Officer is erroneous in so far as it is prejudicial to the interests of the revenue, he may, after giving the assessee an opportunity of being heard and after making or causing to be made such inquiry as he deems necessary, pass such order thereon as the circumstances of the case justify, including an order enhancing or modifying the assessment, or cancelling the assessment and directing a fresh assessment. A bare reading of the said provision, reveals that it is Commissioner , who is to satisfy himself before initiating the proceedings u/s 263 of the Act. The Commissioner has been defined under section 2(16) of the Act which reads as under :- Definitions. 2. In this Act, unless ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ued u/s 263 of the Act for treating the order of AO as erroneous and prejudicial to the interest of the revenue. In this case, we find that it is a mandatory requirement for the Ld.CIT to incorporate the reasons for treating the order of AO as erroneous and prejudicial to the interest of the revenue. In holding so, we rely upon the decision of the Hon ble Madhya Pradesh High Court in the case of CIT vs Sattandas Mohandas Sidhi reported in 230 ITR 591 (MP) wherein it was held as follows :- Held, (i) that under section 263, notice has to be sent to the assessee and the notice should contain reasons as to how the order is prejudicial to the Revenue. According to section 282 of the Income-tax Act, a notice or requisition under the Act has t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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