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2012 (9) TMI 187 - ITAT, HYDERABADJustification in invoking CIT's powers u/s 263 - setting aside the assessment order passed under section 143(3) - excess amount debited to the profit and loss account on account of purchases - Held that:- It is manifest from the assessment order that the AO has not at all examined the issue of the genuineness of purchases and excess claimed on account of purchases as pointed out by the CIT(A). When the AO has not discussed anything in respect of the claim of expenditure towards the purchases, then, it is a clear case where the AO has not applied his mind on this issue. There is nothing in the assessment order to indicate that the AO has applied his mind and has taken any view on the issue. When nothing has been recorded in the assessment order for addressing the issue in question on which the CIT has invoked the provisions of section 263, then, it cannot be said that the AO has taken any view on this issue. CIT has not finally decided the genuineness of purchases against the assessee because it requires a proper enquiry and verification of facts and record, therefore, the Commissioner is justified in setting aside the assessment order and directing the AO to re-do the same after conducting a proper enquiry - against assessee.
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