TMI Blog2014 (4) TMI 863X X X X Extracts X X X X X X X X Extracts X X X X ..... letion of the assessement without obtaining the full and complete information asked for by the AO himself would amount to a serious error in procedure and causes prejudice to the interest of the Revenue - When the CIT directed the AO to get the full information before taking a view, he was certainly not directing a fishing or roving enquiry nor was he directing the AO to follow a particular line of enquiry or investigation - in the final order all that the Commissioner did was to set aside the original assessment order and restored back the matter for reconsideration by the AO after granting opportunity of hearing to the assessee - The final order balanced the interest of the Revenue with the rights of the assessee who was afforded an oppor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inished goods was short by Rs.86,25,505/- and stock of raw material found was in excess by Rs.3,64,696/- as compared with the stock as per the books of account and no satisfactory explanation is given. In these circumstances, an addition to the extent of Rs.11,94,982/- by reason of unaccounted sales was made and the assessment order framed on 31.12.2009. 3. The Commissioner after considering the materials thought it fit to issue notice calling for explanation as to why his revisional powers ought not to be invoked to set aside the assessment order since the AO s order was prima facie erroneous and prejudicial to the interest of Revenue. 4. The assessee/respondent resisting the move for revision contended that all the information sough ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ese are part of assessment record. We do not find any adverse inference drawn by the Assessing Officer on these documents. 10. The assessee has also furnished list of debtors in excess of Rs.1 lakh along with the full addresses, amounts due etc. to the AO. Similar particulars have been given in the case of loans and deposits. On verification of these details the AO, apparently has not drawn any adverse inference nor sought to make addition under Section 68 of the Income Tax Act, 1961. The Assessing Officer has accepted these entries in the books. The Tribunal disagreed with the Commissioner s revisional order which had held that the assessment was completed without obtaining full reply in the form of confirmation of the concerned cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e expressed by the Commissioner that the AO s order is erroneous and prejudicial to the interest of the Revenue. Whilst there is no gainsaying that every error is not capable of correction, at the same time, the Commissioner s powers in terms of the text of Section 263 are wide. To characterize the use of that power as a fishing or roving enquiry in the circumstances of the case - especially when the AO s record itself admitted that the assessee was required to produce the copies of the accounts or confirmation in excess of Rs. 1 lakh which had not been filed - in the opinion of the Court displays grave error in the approach of the Tribunal. In fact the note to the extent it is material cited that since there was pressure of time, the AO ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
