9911796707
TMI Blog2023 (10) TMI 196X X X X Extracts X X X X X X X X Extracts X X X X ..... ax erred in law and on facts in assuming jurisdiction u/s 263 of the Act in order to substitute his subjective view in place of judicious view taken by the ld. AO on the same set of facts/evidences on record, by holding that the order passed u/s 143(3) of the Act dated 19.04.2016 was erroneous and prejudicial to the interests of revenue. 2. That, the Ld. Pr. Commissioner of Income Tax has erred in law as well as on facts in assuming that no verification was made during the course of the assessment failing to appreciate that assessment was passed after due enquiry and hence assumption of jurisdiction u/s 263 of the Act on misconceived premise is unsustainable in law. 3. That, the Ld. Pr. Commissioner of Income Tax has erred in law as w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee being not erroneous and hence not prejudicial to the interests of revenue, the order passed u/s 263 of the Act directing to make a fresh assessment is without any basis, bad in law and liable to be quashed." 3. Brief facts of the case are that, the assessee is engaged in the business of trading of all the kinds of jewellery Items. The return of income declaring an amount of Rs. 3,64,150/- has been filed by the assessee and a same has been processed u/s 143(1) of the Act. Later, the case was selected for limited scrutiny through CASS. Notice u/s 143(2) of the Act dated 18/09/2015 was issued which was duly served upon the assessee. Thereafter, notice u/s 142(1) of the Act was issued on 09/10/2015. The representative of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case, vehemently submitted that the Ld. PCIT has committed error in observing that 'no verification was made during the course of the assessment by the A.O'. The Ld. PCIT failed to appreciate that the assessment order was passed after due enquiry and after verifying the materials produced by the assessee and also the material available on record based on the enquiry. The Ld. A.O. has also verified the creditworthiness of the creditors. The sums have been received through banking channels and complete evidence was provided during the course of assessment, which has been duly verify and accepted by the A.O. The Ld. Counsel for the assessee further submitted that, even notice u/s 133(6) of the Act has been issued to the firms whom the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only made detail enquiry with the Assessee but also by issuing the Notice under Section 133(6) of the Act to the Creditors and after obtaining the details and convincing himself, found that the Creditors are genuine and passed the Assessment Order in-favour of the Assessee. 12. Further, there was no material brought by the Pr. CIT to observe that "no verification was made during the course of the assessment by the A.O." On the other hand, it is seen from the record that, the Ld. A.O. has made detailed enquiry, considered all evidence and arrive to a conclusion to accepted the income declared by the Assessee. Thus, in our opinion, the Pr. CIT has only expressed the different view which is not permissible under Section 263 of the Act. Revis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the courses permissible in law and it has resulted in loss of revenue; or where two views are possible and the Income Tax Officer has taken one view with which the Commissioner does not agree, it cannot be treated as an erroneous order prejudicial to the interests of the revenue unless the view taken by the Income Tax Officer is unsustainable in law. The case laws relied by the Revenue in respect of Section 263 also reiterates the said ratio as well. Some of the decisions relied by the Revenue are not at all applicable in the present case as distinguishing facts involved in those cases. Therefore, order u/s 263 of the Act in present appeal is not justified. Accordingly, we allow the Grounds of Appeal of the assessee and the order u/s 263 i ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
