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TMI Blog2023 (3) TMI 1545X X X X Extracts X X X X X X X X Extracts X X X X ..... ision of Alfa Laval Lund AB [ 2021 (11) TMI 327 - ITAT PUNE ] in which revision action in such a manner was held to be illegal and quashed. As five items of disallowance mentioned by PCIT, at least four items were such which did not require any disallowance and still PCIT has alleged in his show-cause notice. Thus, it is quite manifest that the Ld. PCIT has given approval as a mere formality, merely on the basis of proposal of lower authorities and without examination/consideration of records. Clearly therefore, the revision-action undertaken in the present case is not in accordance with the requirement/mandate of section 263. Therefore, we are inclined to quash such revision-order and restore the original assessment-order. Assessee appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome was assessed at Rs. 16,33,93,930/-. Subsequently, Ld. PCIT examined the record of assessment proceeding and viewed that the assessment-order passed by Ld. AO is erroneous in so far it is prejudicial to the interest of revenue, which attracts revisionary-jurisdiction u/s 263. The reason of framing such a view, as mentioned by Ld. PCIT in the show-cause notice dated 01.03.2021, is such that the Ld. AO has not made these disallowances while passing assessment-order which were required to be made, namely (i) prior period expenses amounting to Rs 68,42,720/-; (ii) Belated payment of provident funds amounting to Rs 3,92,64,279/- u/s 36(1)(va); (iii) Provision for payment of gratuity of Rs. 5,11,77,913/-; (iv) Payments of Rs. 5,76,70,528/- ina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee has filed this appeal. 9. By means of various grounds raised in Appeal Memo which are not being reproduced for the sake of brevity, the appellant-assessee requires us to adjudicate whether or not the revision-order passed by Ld. PCIT u/s 263 is valid in the eyes of law? 10. Ld. AR straightaway carried us to a Paper-Book dated 20.03.2023 (running over 81 pages) and a Written-Submission dated 14.03.2023 (running over 6 pages + annexures consisting of 13 pages enclosed thereto) filed by him. Referring to various documents placed therein, Ld. AR submitted that the revisionary-action undertaken by Ld. CIT(A) is totally illegal and against the mandate of section 263 which is very much clear from following facts/evidences: (i) Firstly, Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld. AR carried us to Page No. 43 44 of the Paper-Book, where a copy of Form No. 3CD (Tax Audit Report) submitted by assessee is placed on record. Referring to item no. 20(b) therein, Ld. AR demonstrated that the due dates and actual dates of payments mentioned by auditors clearly reveal that the entire contribution of Rs. 3,92,64,279/- on account of employee s contribution to Provident Fund had been paid before the due dates prescribed under the Provident Fund Act and there was no delay in payment as alleged by Ld. PCIT; thus no disallowance was required u/s 36(1)(va). Then, the Ld. AR carried us to Page No. 13 of the Paper- Book where a copy of the Computation of Taxable Income is placed which clearly reveal that the assessee had voluntar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that: A proposal for revision u/s 263 of the IT Act, 1961 was received from DCIT(IT)-1, Pune through the Jt.CIT(IT), Pune vide letter No. Pn/Jt.CIT(IT)/ 263/2016-17/61 dated 23.05.2016 . It is thus manifest that the edifice of the revision in the extant case has been laid on the bedrock of receipt of the proposal from the AO. At this stage, it would be worthwhile to have a glance at sub-section (1) of section 263 of the Act, which runs as under:- The Commissioner may call for and examine the record of any proceeding under this Act, and if he considers that any order passed therein by the Assessing Officer is erroneous in so far as it is prejudicial to the interests of the revenue, he, may, after giving the assessee an opportunity of being h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation from the AO is not `the record of any proceedings under this Act'. To put it simply, the consideration that the assessment order is erroneous and prejudicial to the interests of the revenue should flow from and be the consequence of his examination of the record of proceedings. If such a consideration is not preceded by the examination of record of the proceedings under the Act, the condition for revision does not get magnetized. 5. It is trite that a power which vests exclusively in one authority, can t be invoked or cause to be invoked by another, either directly or indirectly. Section 263 of the Act confers power on the CIT to revise an assessment order, subject to certain conditions. Instantly, we are confronted with a situat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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