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2009 (10) TMI 601 - AT - Income TaxRevision u/s 263 - Property at Adyar, Reconciliation of Profits - This property was let out by the assessee on a monthly rental of Rs. 3,500 and hence the sum of Rs. 42,000 was offered for tax - It is also trite that the valuation fixed by Municipal authorities is quite relevant for the determination of the ALV. In the present case, it is not in dispute that the Municipal authorities have fixed the valuation at a higher figure than the rent receivable - ALV of this property has been fixed by the Municipal Corporation is Rs 2,04,968, whereas the assessee has declared this at Rs. 42,000 only - The minimum ALV that could be adopted for this property is Rs. 2,04,968 which is equivalent to the ALV fixed by Corporation of Chennai - it is held that order of ld. CIT under section 263 on this point is perfectly justified and calls for no interference, as such the same is confirmed Regarding reconciliation of profit - The assessee explained that there was increase in the operating profit by Rs. 1.08 crores and also there was considerable reduction of Rs. 1.01 crores in the expenditure for self-consumption - Considering the fact that in respect of the issues mentioned by him as well as other crucial issues, since no information was given by the assessee, the Assessing Officer had no opportunity to look into them and examine - Similarly, the schedule showing cost of goods sold as well as the cost of services gives a fair view about the expenses incurred by the assessee - If the Assessing Officer is able to locate such leakages, but then fails to make further enquiry, then it would be an error on his part which may render the order passed by him to be erroneous and prejudicial to the interests of revenue - while dealing with the aspect of profits, the CIT has not been able to show a single error in the order of the Assessing Officer - Appeal is partly allowed
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