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TMI Blog2021 (12) TMI 1065X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing Officer has passed the assessment without making enquiry for holding the same as erroneous. In the case of. CIT v. Software Consultants [ 2012 (2) TMI 18 - DELHI HIGH COURT] the hon'ble Delhi High Court has held that where no addition is made on the grounds mentioned in the reasons recorded for reopening of the assessment, the assessment order cannot be said to be erroneous under section 263 of the Act In the present case the Assessing Officer has not made any addition on the ground mentioned in the reasons recorded Hence, the findings of the learned Commissioner of Income-tax (Exemptions) are not in consonance with the ratio laid down in the aforesaid case - we allow the appeal of the assessee and set aside the impugned order passed by the learned Commissioner of Income-tax (Exemptions) under section 263 of the Act. - Decided in favour of assessee. - I.T.A. No. 624/CHD/2016 - - - Dated:- 2-11-2021 - N.K. Saini, Vice President And R.L. Negi, Member (J) For the Appellant : Ashwani Kumar and Bhavesh Jindal, Chartered Accountants For the Respondents : C. Chandrakanta, Commissioner of Income-tax ORDER Per R. L. Negi , Judicial Member The assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d submissions made during the course of hearing. 4. The learned counsel for the assessee submitted before us that the impugned order passed by the learned Commissioner of Income-tax (Exemptions) is against the facts and law as there is no justification in holding the assessment order passed under section 143(3)/147 erroneous and prejudicial to the interests of the Revenue. The learned counsel further contended that the learned Commissioner of Income-tax (Exemptions) has wrongly held that the Assessing Officer has passed the assessment order without proper enquiry and due application of mind. The learned counsel further pointed out that the learned Commissioner of Income-tax (Exemptions) has not given any finding as to how the order is erroneous and prejudicial to the interests of the Revenue. The learned submitted that the case of the assessee was reopened for conducting enquiry regarding Indian and foreign currency seized by the police on January 27, 2011. During assessment proceedings, the assessee demonstrated that the currency belonged to Tsurphu Labrang, a trust registered in Delhi and does not pertain to the assessee-trust. Further the trust had been granted registration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rther relied upon the judgment of the hon'ble Supreme Court in the case of Malabar Industrial Co. Ltd. v. CIT [2000] 243 ITR 83 (SC), the hon'ble Delhi High Court in the case of CIT v. Software Consultants [2012] 341 ITR 240 (Delhi) and the decision of the co-ordinate Bench in the case of Crystal Pharmaceuticals v. CIT I.T.A. No. 439/Chd/2013 to substantiate his contentions. 5. On the other hand, the learned Departmental representative supporting the order passed by the learned Commissioner of Income-tax (Exemptions) submitted that since the learned Joint Commissioner had passed the assessment order without making proper enquiry on the issues raised in order under section 263 of the Act, the learned Commissioner of Income-tax (Exemptions) has rightly set aside the assessment order and directed the Assessing Officer to pass assessment order afresh taking into consideration all the issues pointed out in the order. The learned Departmental representative further contended that since there is no merit in the appeal filed by the assessee, the same is liable to be dismissed. 6. We have heard the rival submissions of the parties. As pointed out by the learned counsel, the le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner of Income-tax has to be satisfied of twin conditions, namely, that the order sought to be revised is erroneous and that the order is prejudicial to the interests of the Revenue. The hon'ble court further held that the power under section 263 cannot be invoked to correct each and every type of mistake committed by the Assessing Officer. The hon'ble court further held that the phrase prejudicial to the interests of the Revenue has to be read in conjunction with an erroneous order passed by the Assessing Officer. Hence, every loss of revenue as a consequence of an order cannot be termed as prejudicial to the interests of the Revenue. In the case of ITO v. DG Housing Projects Ltd. [2012] 343 ITR 329 (Delhi) the hon'ble Delhi High Court has held that revisional power under section 263 of the Act is normally exercised in the case of no enquiry and not in the case of inadequate enquiry. The Assessing Officer has passed the assessment order after making enquiries, the learned Commissioner of Income-tax (Exemptions) has wrongly observed that the Assessing Officer has passed the order without making any inquiry on the issues discussed in the revisional order. The documents re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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