Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (12) TMI 628 - ITAT CUTTACKJurisdiction power u/s 263 by CIT(A) - Stock Shortages - Held that:- The assessee before us demonstrated that the purchases have been accepted by the AO and the amount was shown in the closing stock being held by the Government authorities on the basis of billing by the assessee when the sale price remains determined by them only - Thus assessee on demonstrating that the issues were dealt with by the AO in his order u/s.143(3) when he took note of the survey proceedings on 17.1.2008 for the impugned AY when the financial year closed on 31.3.2008. The gross profit is estimated at the time of survey which gross profit was on the basis of sales up to 31.3.2008. Moreover, it has been submitted that the valuation becomes erroneous to the extent that the purchases having been accepted, sales having been accepted and closing stock having been accepted, by no stretch of imagination can the amount be brought to tax being the stock difference in the middle of the year can be re-verified on assuming jurisdiction u/s.263 would be an exercise in futility. CIT(A) has again directed to verify the assuming of estimating of gross profit rate which could neither be an error or loss to the Revenue being prejudicial to the interest of Revenue, thus this issue could not be dealt with by the CIT u/s.263. Unexplained investment in construction of factory building - Held that:- Valuation here again on assumption or presumption was predominantly in the mind of the learned CIT. After verifying or observing the error, the learned CIT deleted the issue for reconsideration rightly noted that the revisionary power cannot be extended to the issue - no direction to the Assessing Officer by holding a different view alone on which revisionary power can be extended to. Disallowance of expenses - Held that:- Unable to satisfy with the contention of the CIT-DR that details of various accounts were to be called for when the details of unsecured loans, sundry debtors, purchases etc., which are grossly interconnected to the extent that the CIT himself does not know as to what would be done on calling the details thereof. The CIT was to assume jurisdiction u/s.263 when on the basis of assessment record he has found errors committed by the Assessing Officer prejudicial to the interest of Revenue. He cannot ask the Assessing Officer for roving enquiry based on a view which has also not been specified by him in his order.
|