9911796707
TMI Blog2022 (7) TMI 1109X X X X Extracts X X X X X X X X Extracts X X X X ..... ear 2012-13. The impugned order is originated against the order of Asstt. Commissioner of Income Tax, Circle-III, Ferozepur (in brevity the ACIT) passed u/s 143(3) of the Act dated 25.03.2015. 2. The assessee has raised the following grounds of appeal: "1. That the learned Principal commissioner of Income, Bhatinda Range, Bhatinda was not right in applying the provisions of the section 263 of the Income Tax Act, 1961 on the same issue on which the Assessing officer, Range -3, Ferozepur has recorded his findings in Para 2 of the Assessment orders passed for the Asstt. Year 2012-2013 on dated 25.3.2017 without appreciating the facts of the case. It is therefore requested that the orders passed u/s 263 of the I.T. may kindly be quashed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed on hypothetical assumption and not based on facts and reality under section 263 may kindly be quashed. 5. That the assessee craves to grant any other relief which this court may deemed fit in the interest of Natural justice." 3. Brief fact of the case is that the assessment was completed u/s 143(3) of the Act, the assessee verified the following expenses as electricity repair expenses, generator maintenance, salary, crate repair, legal fees paid, freight expenses, machinery repair & spares, paddy freight, sheller labour and Power & fuel. After the verification for restrict the leakage of revenue addition was made Rs.4,00,000/- with the total income of the assessee. Also Rs. 1,60,00,000/- was added back against share application mon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the documents are submitted before the Ld. AO as per its requisition in the notice u/s 142(1). The questionnaire of the Ld. AO is annexed in APB page no. 8, the notice dated 11.08.2014. The assessee almost covers of this issue during the assessment proceedings. The Assessing Officer verified the documents. The Ld. counsel further mentioned that after the notice of u/s 263(1) of the Act, the assessee filed a written submission to clarify all the details the low is containing in APB page nos. 5 to 7. Further, draw our kind attention that a notice was issued u/s 142 for verification of all the details by the Ld. AO, the copy of the submissions with annexure are also annexed in APB from page 111 to 163. The Ld. counsel further relied on the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r directing a fuller inquiry to find out if the view taken was erroneous, specifically when the view was arrived at by the AO after an inquiry. We find that the aforesaid judgment of the Hon'ble High Court had thereafter being upheld by the Hon'ble Supreme Court in the case of CIT v. Nirav Modi [2017] 77 taxmann.com, 244 Taxman 194 (SC) and the SLP filed by the Revenue was dismissed." The Ld. counsel further argued that related to unsecured loan from DDP & Sons, the Ld. Pr. CIT did not take the point in his requisition issued u/s 263(1) of the Act so the setting aside the issue is not relevant in the question of violation of the reasonable opportunity for the assessee. 5. The Ld. CIT DR vehemently argued and relied on the order of the Pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r or to elaborate as to what should have been 'appropriate' evidence. The fact remains that the specific issue raised, in the revision order was specifically looked into, detailed submissions were made and these submissions were duly accepted by the Assessing Officer. Merely because the Assessing Officer did not write specific reasons for accepting the explanation of the assessee cannot be reason enough to invoke powers under section263, and non-mentioning of these reasons do not render the assessment order "erroneous and prejudicial to the interest of the revenue". Considering the above discussion, the ld. PCIT had invoked the section 263 which is beyond the jurisdiction. 7. In the result, the appeal of the assessee is al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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