Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (9) TMI 267 - AT - Income TaxRevision u/s 263 by CIT – Revision on basis of objection raised in the Audit - Held that:- Twin condition of (i) Order to be erroneous and (ii)Order to be prejudicial to the Revenue, to be satisfied - Commissioner of Income Tax while passing the order under section 263 of the Act had not even taken any note of the objection of the assessee that the figures appearing in the show cause notice do not match with the figures reflected in the Balance Sheet of the assessee. The basis of such figures in the show cause notice issued by the Commissioner of Income Tax is not clear and in the absence of the same, no merit in invoking of jurisdiction by the Commissioner of Income Tax under section 263 of the Act specially in cases where the Assessing Officer had made due enquiries during the course of assessment proceedings and had applied his mind before passing the assessment order Commissioner of Income Tax in the present case had also initiated the proceedings under section 263 of the Act on the basis of the audit objections. Show cause notice was issued in the present case for non-deduction of tax at source, out of certain expenses incurred by the assessee and order passed by the Commissioner of Income Tax under section 263 of the Act directing the Assessing Officer to re-determine the income of the assessee by applying a rate other than the rate applied by the Assessing Officer, being without jurisdiction, is not tenable in law - The provisions of section 263 of the Act are clear and absolute that the power is to be exercised by the Commissioner of Income Tax from the examination of the records of the proceedings under the Act. The explanation under section 263 of the Act defines 'records' as all records relating to any proceedings under the Act available at the time of examination by the Commissioner. The audit objections under no circumstances can be called as record empowering the Commissioner of Income Tax to exercise jurisdiction under section 263 of the Act. Further it is apparent that the Commissioner of Income Tax has initiated the revision proceedings only on the basis of Audit Objection. Such exercise of power under section 263 of the Act is not tenable in law. The grounds of appeal raised by the assessee are thus allowed – Decided in favor of Assessee.
|