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TMI Blog2019 (12) TMI 518X X X X Extracts X X X X X X X X Extracts X X X X ..... ied by him. He has also referred to assessee s explanation and reconciliation of the AIR information/Form no.26A. Thus, as could be seen from the facts on record, the Assessing Officer in the course of assessment proceedings, has examined and enquired into the income shown by the assessee in the Profit Loss Account and has also verified the details of expenditures claimed. The allegation of learned PCIT that the Assessing Officer has not made any enquiry on the issues referred to by him is without any basis and contrary to the facts and materials on record - Also, on a perusal of the impugned order of learned PCIT, it is noticed that he has not pointed out even a single defect or deficiency in the evidences filed by the assessee. Even, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of the assessee was completed under section 143(3) of the Act vide order dated 30th June 2017, accepting the income returned by the assessee. After completion of the assessment as aforesaid, learned PCIT, in exercise of power conferred under section 263 of the Act, called for and examined the assessment records of the assessee. After examining the assessment records, learned PCIT was of the view that in the Profit Loss Account, the assessee has shown net revenue from operations at ₹ 2,62,91,752, instead of gross revenue received from clearing forwarding and agency charges. He observed, to arrive at the net revenue, the assessee must have debited certain expenses which must have reduced the gross receipts. He observed, while ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penses. The aforesaid arguments on merits also did not find farour with learned PCIT. He observed, the Assessing Officer has completed the assessment accepted the returned income without making enquiry and verification which he was required to make. Thus, he ultimately concluded that due to such lapse on the part of the Assessing Officer, the expenditure claimed by the assessee have not been verified which made the assessment order erroneous and prejudicial to the interests of Revenue. Accordingly, he set aside the assessment order with a direction to the Assessing Officer to allow the expenditure claimed after due verification and enquiries. 3. The learned Authorised Representative submitted, in course of assessment proceedi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er for clearing forwarding their consignment and also includes agency commission. He submitted, the auditor has also certified the aforesaid fact in the audit report in Form no.3CA. The learned Authorised Representative submitted, in course of assessment proceedings, the assessee has furnished voluminous evidences relating to the expenditure incurred on behalf of the customer and has also furnished reconciliation statement to reconcile the income as per books and as per Form no.26AS. He submitted, all sales bills, invoices were furnished before the Assessing Officer with bifurcation and the total turnover of the assessee as per books matches with the figure as shown in the Profit Loss Account. He submitted, after conducting due enquiry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. We have considered rival submissions and perused the material on record. It is evident, assessee s books of account are under statutory audit and the assessee has duly filed audited financial statements along with its return of income. It is also a fact that the assessee is carrying on business as a custom house, clearing forwarding agent. Therefore, it is required to incur certain expenses on behalf of its customers. From the material on record, it is noticed that in the course of assessment proceedings, the Assessing Officer, vide notice dated 17th May 2017, issued under section 142(1) of the Act and the Annexure appended thereto has called for various information/details from the assessee, including, reconciliation of in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... count and has also verified the details of expenditures claimed. Thus, in such circumstances, the allegation of learned PCIT that the Assessing Officer has not made any enquiry on the issues referred to by him is without any basis and contrary to the facts and materials on record. Further, on a perusal of the impugned order of learned PCIT, it is noticed that he has not pointed out even a single defect or deficiency in the evidences filed by the assessee. Even, he has not dealt with a single item of expenditure, which according to him, is either non genuine or unreasonable. On the contrary, while setting aside the assessment order, learned PCIT has himself directed the Assessing Officer to allow the expenditure claimed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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