Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (1) TMI 428 - ITAT COCHINJurisdiction power u/s 263 by CIT(A) - AO did not examine about the change made in the method of valuation of “rejected castings” during the year under consideration - Held that:- As decided in Malabar Industrial Co. Ltd. v. CIT [2000 (2) TMI 10 - SUPREME COURT] the provision of Sec 263 “cannot be invoked to correct each and every type of mistake or error committed by the Assessing Officer” and “it is only when an order is erroneous that the section will be attracted”. As in the present case assessee has changed the method of valuation of “rejected castings” stock and the same has resulted in reduction of profit. The assessee’s argument that such kind of changes is permissible may also be right. However, the scope of tribunal while dealing appeals filed against revision orders passed u/s 263 is limited. It was not shown as the AO did make enquiry on this issue and has taken a plausible view by duly applying his mind. Also no discussion was find on the impugned issue in the assessment order. It was also not shown that the view entertained by the CIT is not sustainable in law. In fact, the CIT has only pointed out that the AO has not made proper verification of the impugned issue and the administrative Commissioner has not expressed any opinion or given any direction about specific treatment of the impugned issue. He has only directed the AO to examine the impugned issue. It is settled proposition of law that the lack of enquiry would render the assessment order an erroneous one no infirmity in the order passed by CIT u/s 263 - against assessee.
|