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2013 (5) TMI 790 - AT - Income TaxRevision u/s 263 - outstanding creditors or debtors unnoticed - Held that:- Provisions of section 263 of the Act mandate that an order for enhancing, modifying or cancelling the assessment and directing afresh assessment can only be passed after giving an opportunity to the assessee of being heard and after making or causing to be made such enquiry as is deemed necessary. In the present case in appeal, neither in the show-cause notice dated January 11, 2012 nor in the subsequent show-cause notice dated January 11, 2012 nor even in any proceedings under section 263 of the Act, had he afforded an opportunity to the assessee on the issue of verification of the genuineness of the outstanding creditors of ₹ 35,27,224 or debtors amounting to ₹ 33,55,662. The learned Commissioner of Income-tax, however, travelled beyond the issues contained in the notices and thus his order on that count was not in accordance with the spirit of the provisions of section 263 of the Act in that regard. In view of the aforesaid finding and having regard to the judgment by the hon'ble Delhi High Court in the case of CIT v. Ashish Rajpal [2009 (5) TMI 18 - DELHI HIGH COURT] are set aside the order on these issues. - Decided in favour of assesse. Outstanding credit of ₹ 10.96 lakhs - Held that:- It is admitted that the appellant has placed on record confirmations in assessment proceedings before the Assessing Officer. The learned Assessing Officer did not make any enquiry thereon and accepted the fact on its face value. This was to be termed as a case of only half-hearted enquiry as no definite conclusion could be arrived merely on the filing of confirmation before the Assessing Officer. The learned Commissioner of Income-tax in the present case only gave direction to decide afresh. Such a direction does not cause prejudice to the assessee as has also been held by the hon'ble Madhya Pradesh High Court in the case of CIT v. Deepak Kumar Garg [2007 (5) TMI 186 - MADHYA PRADESH HIGH COURT ]. The learned Commissioner of Income-tax, therefore, is found justified in setting aside the order of the Assessing Officer to be erroneous in so far as it is prejudicial to the interests of the Revenue on this issue. - Decided against assesse. TDS reconciliation and trading account in various agricultural items - Held that:- Assessing Officer has not made due and proper enquiry. The learned Commissioner of Income-tax merely gave direction to decide afresh. This causes no prejudice to the assesse - Decided against assesse.
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