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TMI Blog2024 (1) TMI 1230X X X X Extracts X X X X X X X X Extracts X X X X ..... Further the tribunal has also noted that the CIT has not dealt with the aspect as to whether the details were not available before the assessing officer or not during the course of the original proceedings. Secured loan and Commission - Taking note of the aspect that the stock statement submitted by the bank and the stock as per the stock register were exactly matching with each other, the tribunal agreed with the assessee s submission that the assessing officer has conducted due enquiry and thereafter completed his scrutiny assessment. The tribunal also noted that the CIT in his order under Section 263 has only observed that there is a possibility of understatement in the closing stock without a specific finding on the said aspect. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case, the Learned Income Tax Appellate Tribunal, B Bench erred in law in quashing the order under Section 263 of the Income Tax Act, 1961 passed by the Commissioner of Income Tax, Kolkata-XII? (b) Whether on the facts and in the circumstances of the case the Learned Income Tax Appellate Tribunal, B Bench erred in law in holding that the Commissioner of Income Tax could not establish order under Section 143(3) as erroneous and prejudicial to the interest of the revenue in spite of the fact that the Commissioner of Income Tax has pointed out in his order that the assessing officer did not conduct proper enquiries on issues of valuation of closing stock and commission payment? (c) Whether the impugned order bad, arbitrary, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and challenging the said order this appeal has been preferred by the revenue. The substantial questions of law on which the appeal was admitted is though three in number all pertain to the correctness of exercise of powers by the CIT under Section 263 of the Act. With regard to the alleged allegation of understatement of closing stock, the assessee has submitted that they had valued the stock at cost on First-in First-out basis or the market price whichever is less that they have duly maintained complete stock record in their computer system item wise which contains full details of opening stock, purchases made, sales made and closing stock giving quantity, rate and value. Further the assessee stated that the computer system automatically ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore the CIT in the initial proceedings and the assessee also filed a paper book before the tribunal enclosing item wise details of closing stock valuation. The other documents which were filed by the assessee were also taken note of by the tribunal which includes the details filed before the bank namely the stocks statements for hypothecation and the value which was found to be exactly identical. Thus, taking note of the aspect that the stock statement submitted by the bank and the stock as per the stock register were exactly matching with each other, the tribunal agreed with the assessee s submission that the assessing officer has conducted due enquiry and thereafter completed his scrutiny assessment. The tribunal also noted that the CIT i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.12.2022 and Principal Commissioner of Income Tax Asansol Versus Gunja Samabay Krishi Unnayan Samity Limited in ITAT No. 270 of 2022 dated 13.01.2023 for the same proposition. 9. In the preceding paragraphs, we have noted as to the exercise conducted by the assessing officer in the scrutiny assessment which was examined by the tribunal and found that the due enquiry conducted by the assessing officer and after perusal of the documents, stock register etc. the assessment was completed. The tribunal also re-appreciated the factual position and found that the CIT while exercising power under Section 263 of the Act has not recorded a specific finding that it is as case of no enquiry by the assessing officer rather the observation was ther ..... X X X X Extracts X X X X X X X X Extracts X X X X
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