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TMI Blog2022 (12) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... ad preferred appeals against three of the assessment years before this Court in ITAT/27/2022, ITAT/32/2022 and ITAT/33/2022 and by judgment dated 15th July, 2022, the appeal filed by the revenue was allowed. The operative portion of the judgment reads as follows: "Since the facts are identical, we take up the facts for consideration in ITAT 27/2022 where the assessee is Premlata Tekriwal. The said assessee filed the return and income for the assessment year 2009-10 declaring a total income of Rs.3,85,822/-. The assessment was reopened based on information received from the Director General of Income Tax (Investigation). The reasons for reopening was based on information received from Maharastra Sales Tax Department who carried out various ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 's estimated income will increase to a certain extent. After making such an observation, the Assessing Officer estimates the addition at 3% of the bogus purchase and accordingly a sum of Rs.1,62,405/- was added to the total income of the assessee. The Principal Commissioner of Income Tax - 10, Kolkata exercised his power under Section 263 of the Act. It is seen that the Assessing Officer himself had submitted before the PCIT that an error has occurred in the assessment order. After perusing the entire files as well as the stand taken by the Assessing Officer, the PCIT was of the prima facie opinion that the Assessing Officer failed to take logical action on the information available with him and therefore, opined that the assessment order i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hawan Dakshin, 2 Gariahat Road South, Kolkata - 700068, on 14.02.2018 at 1.00 P.M., and show cause as to why an order u/s 263 of the I.T. Act shall not be passed in your case, enhancing/modifying/canceling the assessment the assessment order in question or directing a fresh assessment to be made. 5. In the event of failure to comply with the above, it shall be presumed that your have no objection to the proposed action and the matter shall be finalised on merits on the basis of material on record, without further notice." Though the show cause notice was served on the assessee none appeared before the PCIT. Thereafter, with a view to offer further opportunity the matter was adjourned twice. However, the assessee failed to appear. Havi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hen it would be a case where the order is deemed to be erroneous in so far as it is prejudicial to the interest of the revenue. Accordingly, the PCIT held that the entire expenses has to be disallowed as being bogus purchases. The Assessing Officer was directed to reassess the income of the assessee for the relevant assessment years. The assessee carried the matter on appeal to the Tribunal. The Tribunal had allowed the assessee's appeal by relying upon the decision of the Coordinate Bench in Om Foregoing & Engineering P. Ltd. Vs. PCIT in ITA Nos. 509& 510/Kol/2017 for the assessment years 2010-2011 and 2011- 2012 dated 13.12.2017 and the decision of this Court in PCIT Vs. M/s. Subarna Rice Mill, ITAT/196/2015, dated 20.06.2018. Firstly, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urisdiction under Section 263 of the Act. Thus, we are of the view that Tribunal erroneously interfered with the order passed by the PCIT. In the result, the appeals filed by the revenue are allowed and the order passed by the Tribunal is set aside. Consequently, the order passed by the Principal Commissioner Of Income Tax - 10, Kolkata dated 5th March, 2018 is restored. Accordingly, the substantial questions of law are answered in favour of the revenue." Since a common order passed by the learned Tribunal had been reversed by this Court in the aforementioned appeals, the said decision will apply to the cases on hand as well. For the above reasons, the appeals filed by the revenue (ITAT/28/2022 and ITAT/29/2022) are allowed and the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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