Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (6) TMI 663 - ITAT MUMBAIJurisdiction power u/s 263 by CIT(A) - assessee is maintaining its accounts on an exclusive basis, i.e., valuing its inventories as well as purchases and sales, at net of excise duty, which is being accounted for separately, therefore, admittedly there is a technical breach of section 145A - Held that:- Section 145A is a non-obstante provision, which, therefore, is to be necessarily followed for the purpose of returning the income under the Act. The A.O. has, firstly, by not discharging his obligations, being duty bound to verify the assessee's return as being in accordance with the law, and then in acting in disregard of the directions by the ld. CIT, has put the assessee to inconvenience, and which cannot but be depreciated. As regards the invocation of s. 263 case of Malabar Industrial Co. Ltd. v. CIT [2000 (2) TMI 10 - SUPREME Court] laid down four-way test for invocation of a provision i.e. incorrect assumption of facts, incorrect application of law, without applying the principles of natural justice, and without application of mind. It is the last category, if not perhaps the first one as well, which arise in the instant case. Thus confirming the invocation of section 263 in the instant case, direct the assessing authority to observe the directions of the revisionary authority both in letter and in spirit so as to avoid multiplicity of proceedings.
|