9911796707
TMI Blog2022 (10) TMI 624X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee that the aspect of import purchases has been examined by the AO, where the assessee has explained the reasons for difference in purchases. According to the assessee, he had purchased used machinery from abroad, for which, necessary invoices and other related documents have been produced. CBEC has not accepted the invoice value and determined separate value for the purpose of customs duty. Therefore, merely for the reason that the CBEC does not accept the value declared by the assessee, it does not mean that the assessee has understated the imports and difference between actual price paid for imports and value determined by the CBEC is undisclosed income of the assessee. AO after considering relevant facts has rightly conclud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... comes under reasonable cause as provided under the Act, for condonation of delay and hence, delay in filing of above appeal is condoned and appeal filed by the assessee is admitted for adjudication. 3. The brief facts of the case are that the assessee is engaged in the business of import and sale of used printing and paper cutting machines filed his return of income for the AY 2015-16 on 23.03.2017 admitting total income of Rs. 10,87,720/-. The case has been selected for scrutiny and the assessment has been completed u/s. 143(3) of the Act, on 14.11.2017 and accepted returned income. The case has been subsequently taken up for revision proceedings by the PCIT on the ground that assessment order passed by the AO is erroneous in so far as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o consider relevant materials to bring to tax, the difference in value of import made by the assessee for the relevant assessment years which rendered the assessment order passed by the AO is erroneous in so far as prejudicial to the interest of the Revenue. Therefore, set aside the assessment order passed by the AO u/s. 143(3) of the Act dated 14.11.2017 and direct the AO to re-do the assessment and examine the aspect discussed in the body of the order. The relevant findings of the PCIT are as under: 5. I have carefully considered the facts of the case and the submissions made by the assessee. The above facts were/not examined by the Assessing officer during the course of assessment proceedings. There is nothing on record to show that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jurisdiction u/s. 263. In case of Rampyari Devi 67 ITR 84 (SC), it was held that accepting the issue without conduction enquiry is valid ground for invoking proceedings u/s. 263. In case of the assessee, the Assessing Officer has neither applied his mind nor made any enquiry or called for all required details to come to a proper conclusion. In fact, the explanations given by the assessee during the present proceedings were never put forth during the assessment proceedings. But the Assessing Officer accepted completed the assessment without applying mind to the relevant facts and without causing necessary enquiry. Since twin conditions of the order being erroneous and also being prejudicial to the interests of revenue are satisfied, revisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the interest of the Revenue. 6. The Ld. DR, on the other hand, supporting the order of the PCIT, submitted that the PCIT has brought out clear facts to the effect that the assessment order passed by the AO is erroneous in so far as it is prejudicial to the interest of the Revenue and their orders should be upheld. 7. We have heard both the parties, perused the materials available on record and gone through orders of the authorities below. The sole basis for the PCIT to invoke provisions of Sec. 263 of the Act, is difference between value of imports shown by the assessee in the books of accounts and value determined by the CBEC for the purpose of payment of customs duty. According to the PCIT, said difference constitutes unexplained i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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