9911796707
TMI Blog2021 (9) TMI 1560X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer (A.O.) dated 21.12.2019 under section 143(3) of the Act concerning Assessment Year (A.Y.) 2017-18 was sought to be set aside for reframing the assessment in terms of supervisory jurisdiction. 2. As per its grounds of appeal, the assessee has challenged the revisional action of the PCIT whereby the Assessing Officer (A.O.) was directed to pass the assessment order denovo after making enquiries on the points set out in the notice which has already examined and considered during the original assessment proceedings concerning A.Y. 2017-18. The assessee has challenged the assumption of jurisdiction by the PCIT under section 263 of the Act essentially on the ground that the Assessment Order under revision is neither erroneous n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee preferred appeal before the Tribunal. 6. We have carefully considered the rival submissions and challenge to invoking jurisdiction under section 263 of the Act and consequential revisional order. We have also taken note of the material referred to and relied upon during the hearing and the case laws cited. 7. In exercise of powers conferred under section 263 of the Act, the PCIT has proposed revision of the assessment order on two counts: i) The excess stock surrendered by the assessee during the survey, returned as business income, is liable to be considered as unexplained investment under section 69 of the Act and consequently tax was required to be enforced in terms of section 115BBE of the Act. ii) The figures of purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not apply. A reply thereof was furnished (dated 19.12.2019) to the A.O. On consideration of the facts and circumstances narrated in the reply and original submissions, the A.O. found merit in the plea of the assessee and dropped the issue and did not disturb the position taken by the assessee. Certain case laws are relied upon to support the stance taken by the assessee. 9. It was contended that statement taken under section 133A of the Act should either be relied in full or not relied upon. A part of statement cannot be read differently. On appraisal of the facts narrated on behalf of the assessee, it is manifest that the assessee has taken a consistent position on submission of excess stock from business activities and thus a business i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A.O. cannot be branded as erroneous per se on this issue. The invocation of section 263 is thus unjustified on this point. 10. The second issue concerning alleged mismatch between figures appearing in the Trial Balance viz-a-viz audited Balance Sheet towards purchases. Noticeably, the Trial Balance has drawn at 06.03.2019 i.e. date of survey whereas, the audited Balance Sheet has been drawn at 31.03.2017. The assessee contends that it cannot be visualised that two figures at different dates would ordinarily match particularly where the business of the assessee is dynamic and continuing. Secondly, the Trial Balance itself has been taken from books of accounts maintained by the assessee which has been updated as on 31.03.2017 after the surve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ain purchase entries. For instance, under the head "Inside State" & "Ornaments (URD)" purchases appearing in the Trial Balance seem to have been clubbed under the head "New Ornament" & Old Ornament" making it comparable. Once the transfer entries are passed, the figures as per Trial Balance and audited account stands at the near vicinity and purchase shown in the Trial Balance appears to be in conformity with the Balance Sheet subject to time difference. The PCIT, under such circumstances, ought to have been circumspect while putting the assessee with the burden of further enquiry without having any cogent case for doing so. Secondly, we also find merit in the other line of argument that once the books of accounts are rejected, the individu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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