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TMI Blog2022 (12) TMI 1362X X X X Extracts X X X X X X X X Extracts X X X X ..... ch-less any substantial question of law as proposed or otherwise. - R/TAX APPEAL NO. 266 of 2022 - - - Dated:- 13-6-2022 - HONOURABLE MR. JUSTICE A.J.DESAI And HONOURABLE MR. JUSTICE BHARGAV D. KARIA For the Appellant MRS KALPANAK RAVAL ORAL ORDER (PER : HONOURABLE MR. JUSTICE A.J.DESAI) 1. Revenue has filed this appeal under section 260A of the Income Tax Act, 1961 (For short the Act, 1961 ) for the assessment year 2013-2014 challenging the judgment and order dated 12.12.2019 passed by the Income Tax Appellate Tribunal, Surat Bench, Surat in I.T.A. No.586/AHD/2018. 2. Following substantial questions of law are proposed by the Revenue : (i) On the facts and in the circumstances of the case an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rved that there was difference in opening balance of liabilities at Rs. 14,78,098/- which ought to have been disallowed under section 41(1) of the Act, 1961. It was further noticed by the PCIT that the assessee claimed sale at Rs. 227,65,20,025/- from which a sum of Rs. 55,67,517/- was reduced being TCS amount collected by seller from buyers and deposited in the Government account. It was observed by PCIT that the credit of TCS was given to buyers and hence seller cannot reduce the amount collected from buyers and same should be disallowed. 5. Therefore, show cause notice was issued under section 263 of the Act, 1961 by the PCIT. The assessee replied that difference in liabilities is on account of regrouping and recasting of various s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etting aside the order passed by the PCIT under section 263 of the Act as under : 12. In the light of the above mentioned judicial precedents and facts of the present case, what has to be seen is whether the AO has made enquiries about issue under consideration. The Learned Counsel of assessee has drawn our attention to point no. 8 of reply dated 22.12.2015 (PB-22-23) by which the details of TCS/TDS claimed by the assessee in the return of income were filed and TCS not claimed in the return of income {point no. 9) The AO vide questionnaire dated 19.11.2015 (P8-25 by which details of TDS/TCS and prepared 26AS statement were asked for. Thus, the assessment order passed after making enquiries and verification. The learned counsel for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O has failed to make requisite enquiries. If the answer is affirmative, then second question arises whether the acceptance of the claim by the AO was a plausible view or on the facts of the finding on the facts that the said finding of the AO can be termed as sustainable in law. We find that vide questionnaire, the assessee regarding current liabilities and details of TCS were asked for. The assessee had furnished his reply, which is placed found placed in Paper Book Pages as referred above. The assessee has explained that the TCS is being accounted separately and no deduction of the same has been claimed in the Profit Loss Account. Therefore, it the method of accounting, which does not mean that income has escaped assessment or order bei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the interest of the Revenue. It was therefore, submitted that the Tribunal has committed an error in allowing the appeal preferred by the assessee against the order passed by PCIT under section 263 of the Act. Learned advocate for the Revenue heavily referred to and relied upon the order passed by the PCIT to submit that PCIT has rightly exercised jurisdiction under section 263 of the Act, 1961 and as such, the appeal requires consideration. 10. We have considered the submissions made on behalf of the Revenue and have perused the impugned order passed by PCIT as well as Tribunal. We are of the opinion that in view of findings of fact arrived at by the Tribunal as referred to here-in-above, and in view of settled legal position with r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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