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2011 (1) TMI 1161 - HC - Income TaxWhether the Income-tax Appellate Tribunal was correct in holding that the Commissioner while passing the order under Section 263 had merely substituted his own judgement for that of the Assessing Officer without appreciating that the Assessing Officer had gone into the detailed facts of the case - Commissioner found that as per the record the assessee had claimed that he had engaged 10 to 11 workers at Baddi and manufacturing process was carried out through the whole year. The assessee did not file the details of the salary and wages paid to each worker. The total sum debited on account of wages was Rs.2,49,436/- per annum i.e. Rs.20,786/- per month and the salary of each worker would come only Rs.2,078/- per month, which was barely equal to the minimum wages - Commissioner also found that the assessee had availed a packing credit limit of Rs.40 lakhs but no interest expenditure had been debited in the profit and loss account of the Baddi unit – Held that:- assessee claimed a sum of Rs.23,71,100/- on account of foreign travel by one Shri Himanshu Singhal. It cannot be believed that an employee who is getting a sum of Rs.2,000/- per month would be given the duty of going abroad and be permitted to spend Rs.23,17,100/- during foreign travel which is almost 100 times his annual salary, Further the assessee had availed bank credit limit of 40 lakhs but the interest expenditure had not been deposited in the profit and loss account of the Baddi unit. This clearly shows that the books were not being maintained in a proper manner, Tribunal has totally misread the provisions of Section 263 and has wrongly held that the initiation of the proceedings under Section 263 was not justified in the present case, order Tribunal set aside and reaffirm the order of the Commissioner, questions are answered in favour of the revenue and against the assessee. The appeal is disposed of
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