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2020 (9) TMI 816 - ITAT JAIPURRevision u/s 263 - survey u/s 133A on 19/02/2015 wherein the assessee company has surrendered amount - addition u/s 40A (3) - HELD THAT:- Karnataka High Court after considering various judicial pronouncement in the case of CIT Vs. Gokul Das Exports [2008 (7) TMI 595 - KARNATAKA HIGH COURT] has held that assessing officer taking one out of two views the assessment order is not prejudicial to interest of revenue. In view of the above judicial pronouncements and various other judgements on the issue the assessment order passed by A.O. cannot be treated as an erroneous and prejudicial to the interest of revenue. In the case of CIT Vs. Vodafone Essar South Ltd. ( [2012 (12) TMI 70 - DELHI HIGH COURT] held that assessing officer before passing assessment order made an enquiry and directed his mind on all aspects. View adopted by him was clearly one among two plausible views that could have been taken. Commissioner did not specifically furnish any reasons to say why original order was unsupportable in law. Commissioner could not have validity exercised his revisionary power u/s 263 in instant case. The assessee’s return was subject to complete scrutiny and after making detailed enquiry and verification of the impounded documents/records seized during the course of survey u/s 133A A.O. determined total income after making addition u/s 40A(3) and lump sum addition for personal element of use in various expenses claimed in P&L account. During the course of assessment, the assessee has produced books of accounts, cash book, bills/vouchers etc. Given these undisputed facts as apparent from the assessment order, it is clearly apparent that the assessee has undergone through two detailed proceedings - survey proceedings under section 133A and thereafter assessment proceedings under section 143(3) of the Act where its books of accounts were examined not just once but twice by the departmental authorities and accepted after considering the surrendered amount except for certain additions as made under section 143(3) of the Act. AO has made sufficient enquiries, considered the survey records and the surrender made by the assessee and after considering the submissions of the assessee and due application of mind completed the assessment proceedings under section 143(3) of the Act. It is thus evident that A.O. made enquiries on the issue and assessee complied to the enquiries and filed all the required details. Thus, it is not a case where that A.O. made no enquiry or verification which should have been made. It is clear from reading of notice u/s 263 of the Act, that the proceedings u/s 263 has been started on the same issue which have already been considered and examined by the then A.O. As during the year under assessment advertisement expenses of ₹ 1.93 crore were incurred in comparison to ₹ 2.12 crore in the preceding assessment year. During the year under assessment the advertisement expenses have reduced from 2.12 crore to ₹ 1.93 crore due to better rate negotiations with advertising agency. Assessee company has filed advertising agency wise detail of advertisement expenses and copy of confirmations of Mahesh Advertising Agency and Sai Advertising Agency along with 1st reply letter to the questionnaire dated 20-12-2017. Thus, there is no merit in the ld. Pr.CIT’s allegation that at this stage, expenses were not verified by the A.O. Addition to furniture were made during the year and the bills/vouchers of each addition to furniture were filed alongwith copy of its ledger account before the A.O. CIT has also alleged that Vehicle running expenses have been allowed as claimed in the return of income without any verification. Referring details and documentary evidences filed during the course of assessment proceedings it is grossly wrong and bad in law and far away from the facts emanating from the questionnaire (s) issued, note sheet of assessment proceedings and detailed reply and documentary evidences filed as well as books of accounts along with bills/vouchers produced during the course of assessment proceedings, that AO has not verified the foregoing issues warranting invocation of proceedings u/s 263. Revision order set aside.
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