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TMI Blog2019 (8) TMI 459X X X X Extracts X X X X X X X X Extracts X X X X ..... a relook into the assessment in terms of the order of the Principal Commissioner of Income Tax dated 29th March, 2016 under Section 263 of the Income Tax Act, 1961? ii) Whether the appeal before the Tribunal was premature and the Tribunal ought not to have entertained the same? iii) Whether the exercise of jurisdiction by the Tribunal in passing its impugned order dated 4th November, 2016 was erroneous without compliance of the said order of remand made by the Principal Commissioner of Income Tax?" There is no dispute that the appeal before the Tribunal was maintainable. Certain matters had been directed by the Commissioner of Income Tax to be looked into afresh by the assessing officer. The assessee perceived that such matters had alr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal held in favour of the assessee. The first aspect pertains to an order under Section 143(3) of the Act which was found to be erroneous and prejudicial to the interest of the Revenue. The specific matter pertained to the difference in the addition of fixed assets of about Rs. 1.10 crore. The notice under Section 263 of the Act was issued to clarify the difference. The assessee clarified the difference by its written submission and a reconciliation statement was also used. However, the Commissioner, instead of considering the reply, recorded that the issue had not been verified by the assessing officer. The Tribunal set aside the decision of the Commissioner on the ground that the show-cause notice indicated a specific purp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ertaining to disallowance under Section 14A of the Act read with Rule 8D (2) (ii) of the Income Tax Rules, 1962, the tribunal found that the assessing officer had netted off the interest paid with the interest income for working out the disallowance under Rule 8D. According to the tribunal, the assessing officer had applied his mind to the issue and it was not something that escaped the attention of the assessing officer for the Commissioner to assume jurisdiction under Section 263 of the Act on the ground that no enquiry in such regard had been conducted by the assessee. Apropos the third aspect pertaining to trade discount, the tribunal found that the Commissioner had issued the notice for addition of trade discount on the ground that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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