9911796707
TMI Blog2022 (9) TMI 285X X X X Extracts X X X X X X X X Extracts X X X X ..... ow cause notice u/s. 263. We are unable to find any such documents on record, which could show that this issue of decrease in closing stock came up before ld.AO at any point of time. It is a matter of claiming loss towards trading business and without complete evidence such loss claimed by the assessee cannot be allowed. PCIT has rightly observed/held that the order of the AO u/s. 143(3) of the Act is erroneous and prejudicial to the interest of the revenue. No infirmity in the impugned order passed u/s. 263 of the Act setting aside the assessment order and directing the ld.AO to frame the assessment afresh after considering the observations/findings of the ld.PCIT. PCIT has rightly invoked jurisdiction u/s. 263 of the Act to setting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eriod as all its bank accounts had become NPA and hence there was no operational activities in the company. The Consultant was also followed up in respect of the appeal and at last, it was informed that he had missed out the filing of the appeal as he was mentally disturbed during that period. In the meantime when penalty notice was received for invoking penalty for the alleged concealment of income in respect of the stock, the matter was taken up and hence the appeal is being filed now. It is humbly requested that the delay of about 345 days may kindly be condoned as the delay is attributable to the unavoidable circumstances of the consultant and acute financial crisis of the company. 3. We, after perusing the condonation application as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ished during the course of the proceedings. 4. The Appellant craves leave to add, amend, alter vary and / or withdraw any or all the above grounds of Appeal. 6. Brief facts of the case are that the assessee is a private limited company, engaged in trading business of iron ore fines. Nil income declared in return of income for the AY 2013-14. Case selected for scrutiny and notices u/s. 143(2) and 142(1) of the Act issued and duly served on the assessee. The ld. AO after considering the submissions of the assessee made certain additions/disallowances totalling to Rs.48,67,604/- and assessed loss at Rs.1,65,24,578/-. 7. Subsequently ld.PCIT called for assessment records and invoked jurisdictional revisionary power provided u/s. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perusal of the of the impugned order, we find that following is the reason for carrying out revisionary proceeding:- In the P L account there was however a debit of Rs. 7,03,24,572/ - under the head change in inventories . Also as per note-22 of the P L account giving the details of Change in inventories of Stock in trade it is observed that during the previous year relevant to the A.Y.2013-14 the opening balance' of stock-in-trade was Rs.25,74,76,320/- and the closing balance Rs, 18,71,51,748/-. No income from sales was shown during the year, Since the assessee was engaged in trading activities, it was imperative that this lowering of closing stock of (traded) goods should have resulted in income from sales also. However, thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held that the order of the AO u/s. 143(3) of the Act is erroneous and prejudicial to the interest of the revenue. We, therefore, find no infirmity in the impugned order passed u/s. 263 of the Act setting aside the assessment order dt.21- 03-2016 and directing the ld.AO to frame the assessment afresh after considering the observations/findings of the ld.PCIT. The ld.PCIT has rightly invoked jurisdiction u/s. 263 of the Act to setting aside the impugned assessment order passed u/s. 143(3) of the Act. Thus, ground nos. 1, 2 and 3 raised by the assessee are dismissed. Ground no. 4 is general in nature, which requires no adjudication. 12. In the result, the appeal of the assessee is dismissed. Order pronounced in the open Court on 04 -08-2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
