9911796707
TMI Blog2017 (11) TMI 260X X X X Extracts X X X X X X X X Extracts X X X X ..... er, the show cause notice has been issued. Furthermore, nothing was brought on record to substantiate that the order passed by the assessing officer is erroneous or prejudicial to the interest of revenue. In the instant case neither the Commissioner of Income Tax has applied his mind nor he has brought on record that the assessment order was erroneous or prejudicial to the interest of revenue. Admittedly, the original order has been passed under Section 143(3) of the Act was an order passed by the assessing authority who is not below in rank of the Income Tax Officer (Technical), who has initiated the proceedings under Section 263 in the instant case. An order cannot be revised by the equally situated or equally ranked authority or by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 143(3) of the Act on a total income of ₹ 2,28,910/-. 6. The accounts of the assessee has been audited and during the course of audit, the auditor has inserted a note which is quoted hereinbelow: In Financial Year 2004-05 Firm has shown its total receipt from party but in current year 2005-06 it has shown its income as commission received ₹ 4,18,707.70 on total payment received ₹ 1,60,56,923/-. As explained by the assessee that Firm earn only commission on truck playing on behalf of other party. 7. In view of the aforesaid, auditor's note the proceedings under Section 263 of the Act has been initiated. It is found that the order aforesaid was erroneous in so far as it was prejudicial to the inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rred by the assessee before the ITAT which has been decided by the ITAT vide impugned order dated 18.11.2009. Before the ITAT the assessee has challenged the order passed under Section 263 and has submitted that the said order is without jurisdiction, therefore, the same be set aside. 10. In reply to the submission and pleading of the assessee, the departmental representative appeared before the ITAT and has submitted that admittedly the Income Tax Officer (Technical) has initiated the proceedings under Section 263 but the same was initiated on behalf of the Commissioner of Income Tax, therefore, the show cause notice issued by the Income Tax Officer (Technical) was on behalf of the Commissioner of Income Tax and satisfaction recorded in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessing officer is erroneous, in so far as it is prejudicial to the interest of revenue he may, after giving the assessee an opportunity...... made such inquiry....., pass such order thereon as the circumstance of the case justify.... 13. In the instant case, the Tribunal has found that it is only the satisfaction of the Principal Commissioner/Commissioner of Income Tax himself that too after applying his mind and after examining the record of any proceeding. It is required to record his satisfaction the proceedings under Section 263 can validly be initiated. But in the instant case in the order of the Commissioner of Income Tax, it is noticed that nowhere the Commissioner of Income Tax has recorded his satisfaction, rather the satisf ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
