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TMI Blog2021 (9) TMI 644X X X X Extracts X X X X X X X X Extracts X X X X ..... 61 which is void ab-initio deserves to be quashed. 2. Under the facts and circumstances of the case the Learned Principal Commissioner of Income Tax has erred and passing the order U/s. 263 of Income Tax Act, 1961 on the grounds which are not prejudicial to the interest of the Revenue or erroneous. 3. Under the facts and circumstances of the case the Learned Principal CIT has erred in giving the findings on the issues which has already been decided by the Learned Assessing Officer. 4. Under the facts and circumstances of the case the Learned Principal CIT has erred in not considering the reply submitted by the assessee prior to the passing of order u/s. 263 of the IT Act, 1961. 5. Under the facts and circumstances of the case the Le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... debtors and therefore the excess stock of Rs. 3,01,01,642/- and excess cash of Rs. 2,24,166/- and undisclosed debtors of Rs. 2,50,00,000/- was surrendered. This surrender was duly explained in the statement and the relevant questions and answers are question no. 15 to 17 for stock surrender, question no. 18 for excess cash surrender and question no. 20 for surrender of debtors. (Paper book page no. 52 to 67). All these surrenders are for business income. Since the assessee firm is not indulged in other activities other than business activities. Therefore the surrendered income is only business income and nothing else. Therefore the assessee firm is entitled to draw salary and remuneration and allowable under section 40(b) of the Act. The c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 40 to 51 of the paper book which is a detailed reply filed by the assessee in response to show cause notice U/s. 263 of the issued by the ld. PCIT. However, at page No. 40 of the Paper book which is e-proceedings receipt acknowledgement and particular of documents, we noticed that due date for submission of the reply was 23/3/2021. However, the reply to the show cause notice was filed by the assessee on 30/03/2021 vide acknowledgement number mentioned at the top of the receipt and even admittedly the assessee has submitted this reply only on 30/03/2021 with the office of ld. PCIT. Therefore, under these circumstances, since the reply was filed by the assessee at a later stage, therefore, the same was not before the ld. PCIT at the time of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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