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TMI Blog2022 (9) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... e to produce bills/vouchers of site development expenses and the order sheet entry dated 07/12/2017 states that the assessee has filed bills/vouchers of expenses, including lease rent, commission and land development expenses. All these details suggest that the AO has passed the order after taking into account and after examination of all the evidences with respect to amount debited in the purchase account of land. Therefore, there is no justification of initiating and passing order u/s 263 by learned Pr. CIT. For other issue of site wages and other expenses assessee had already filed copy of ledger account of such wages/development expenses vide reply wherein the assessee, in view of notice dated 16/01/2017, had submitted the copy of account of expenses including site wages expenses/development expenses. We further note from the order sheet dated 07/12/2017 that Assessing Officer has noted that details of expenses relating to business promotion, lease rent, commission, petrol, travelling etc. were filed by the assessee and which were checked. Therefore, in view of these facts and circumstances, we find that the Assessing Officer had carried out sufficient examination of the exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and without appreciating that during the course of assessment proceeding that in compliance to notice u/s 142(1) dated 10.08.2017, all the required details regarding purchase of land has been submitted / produced and the same has already been examined in the assessment proceeding. 3.1 That the Registry for purchase of land along with name and address of the seller who were agriculturist has been produced during assessment proceeding and after detailed examination of the exceptional circumstances for payment of cash to Agriculturist had accepted the same, hence this issue is neither erroneous nor prejudicial to the Interest of Revenue, hence the Order passed on this issue u/s 263 is invalid. 4. The Ld. PCIT-1, Lucknow fails to appreciate that the assessment order has been passed after examine all the facts as stated in the notice u/s 263 of I. T. Act and Ld. A. 0. had also made additions under the different heads which were under the appeal before First Appellate Authority, hence present order passed u/s 263 is contrary to the provisions of Law. 2. At the outset, Learned A. R. invited our attention to the fact that the appeal filed by the assessee is delayed by 92 day ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e learned CIT(A) related to the same issues on which learned Pr. CIT has passed the order u/s 263, the Learned counsel for the assessee replied in negative. In view of the negative reply by Learned counsel for the assessee, the Bench arrived at the conclusion that then in that case Clause C to Explanation 1 of section 263 will not be applicable in the facts and circumstances of the present case as learned Pr. CIT has passed the order on those issues on which there was no appeal pending before learned CIT(A) and therefore, ground No. 1, taken by the assessee, was rejected and Learned counsel for the assessee was asked to proceed on merits on other grounds. 3.1 Learned counsel for the assessee submitted that learned Pr. CIT had passed the order for fresh assessment by observing five issues and in this respect our attention was invited to the copy of notice u/s 263 of the Act which is part of order passed u/s 263. Learned counsel for the assessee in this respect filed a chart wherein the issues raised by the learned Pr. CIT have been narrated. Learned counsel for the assessee submitted that as regards the first issue of cash payments, the Assessing Officer in the assessment order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Officer. Our attention was invited to page 26 of the paper book where detail of land purchased for financial year 2014-15 was placed and wherein date-wise purchase of different lands along with the stamp duty paid thereon and expenses incurred thereon was placed. Learned counsel for the assessee submitted that the total amount of these lands purchased at two projects Royal Awadh and Gomti Vihar were taken into the ledger account, a copy of which was placed at page 25 of the paper book. Learned counsel for the assessee submitted that in the ledger account the total amount of land purchased is Rs.4,07,28,170/- which is the same amount as in the chart. It was submitted that learned Pr. CIT, while observing the difference, has overlooked the fact that besides the amount of land purchases, there were expenses of stamp duty, development expenses other expenses also and if the total of these expenses is included in the amount of sale deeds, it will tally with the amount debited in the ledger account and hence there will be left no other sale deeds to be examined by the Assessing Officer. It was submitted that vouchers for expenses of stamp duty, development expenses and other expe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 38 where copy of such letter was placed. Our attention was further invited to the same order sheet where the Assessing Officer, vide order sheet entry dated 07/12/2017 has noted down that the assessee had filed bills and vouchers of land and land development etc. Learned counsel for the assessee submitted that out of expenses of Rs.67,58,935/-, Rs.65,112/- represented the lease rent expenses and the rest was on account of other expenses, the details of which were also furnished to the Assessing Officer vide reply dated 07/03/2017. In view of the above facts and circumstances, it was submitted that the Assessing Officer had already enquired by way of notice regarding site, wage, and development expenses and lease rent expenses which was responded to by the assessee along with the documentary evidences and also bill vouchers of expenses were submitted and after being satisfied with the explanation of the assessee, the Assessing Officer had framed the assessment order. It was submitted that against the show cause notice of the learned Pr. CIT, the assessee explained that the issue of site development was enquired by the Assessing Officer and was duly responded by the assessee vide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d was also submitted to the Assessing Officer during original assessment proceedings as is apparent from the reply of the assessee vide letter dated 01/09/2017, placed at pages 23 24 of the paper book. In this letter, the assessee, vide reply No. 3, had submitted to the Assessing Officer that details of purchase of land, as desired in the format, is enclosed and such format, submitted to the Assessing Officer, is placed at page 26 of the paper book. The details at page 26 are complete details regarding purchase of various pieces of land, their registry amount, the development expenses incurred thereon and other expenses incurred thereon and if we make a total of these amounts, the total comes out at Rs.99,48,625/- which should be the difference noted by learned Pr. CIT instead of amount wrongly noted by him at Rs.1,15,48,625/-. In the order of learned Pr. CIT there is a calculation mistake of Rs.16 lacs. However, there are no more sale deeds, the copies of which were not filed by the assessee during the original assessment proceedings. The observation made by learned Pr. CIT is totally wrong as he has not looked into this aspect that besides an amount of sale deed, the assessee h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xpenses vide reply dated 07/03/2017, a copy of reply dated 07/03/2017 is placed at pages 37 38 of the paper book wherein the assessee, in view of notice dated 16/01/2017, had submitted the copy of account of expenses including site wages expenses/development expenses. We further note from the order sheet dated 07/12/2017 that Assessing Officer has noted that details of expenses relating to business promotion, lease rent, commission, petrol, travelling etc. were filed by the assessee and which were checked. Therefore, in view of these facts and circumstances, we find that the Assessing Officer had carried out sufficient examination of the expenses relating to site wages and therefore, passing of order u/s 263 on this account is also not justified. 4.3 Hon'ble Allahabad High Court in the case of CIT vs. Krishna Capbox (P.) Ltd. [2015] 372 ITR 310 (All) has held that where the Assessing Officer made certain queries which were replied to by the assessee and after enquiry being satisfied in respect of queries replied by the assessee, Assessing Officer accepted declared income and passed assessment order, CIT on the ground that the Assessing Officer had not made enquiry on cer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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