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2013 (9) TMI 340 - AT - Income TaxRevision u/s 263 - Conduct of the revenue officers - Unexplained expenditure u/s 69C - Repayment of housing loan - Held that:- In this case, even though the assessing officer called for the details, he has not discussed the same in the assessment orders. Therefore, the reasons for allowing the claim of the assessee / not including the increase in wealth in the assessment are not forthcoming from the assessment orders. This Tribunal is of the considered opinion that the failure of the assessing officer to record reasons for the conclusions reached in the assessment orders is an error which is prejudicial to the interest of the revenue. The non application of mind to the materials filed by the assessee is an error which warrants the exercise of powers by the Administrative Commissioner u/s 263 of the Act. - Decided against the assessee. Allahabad High Court in a recent judgment [2013 (6) TMI 67 - ALLAHABAD HIGH COURT] expressed its shock and anguish the way in which the assessment orders and the revisional orders are being passed. - The Commissioner of Income- tax initiated proceedings to cancel the registration u/s 12A of the Act. However, it was dropped without recording any reason. Subsequently, the case was reopened and notice was issued u/s 147 of the Act. The assessee challenged the notice issued for reopening the assessment by way of writ petition. While considering the wit petition, the Allahabad High Court expressed its shock and anguish on the way in which the orders are being passed by the income-tax authorities. Assessment order does not reflect the application of mind by the assessing officer to the material filed by the assessee. The non application of mind to the material filed by the assessee is an error which is prejudicial to the interest of the revenue. Therefore, the Administrative Commissioner has rightly exercised his jurisdiction u/s 263 of the Act - Decided against Assessee.
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