Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (11) TMI 653 - AT - Income TaxValidity of order u/s 263 – erroneous and prejudicial to the interest of revenue or not - Assessee contended that the revisional jurisdiction has been invoked merely on the basis of audit objection - Held that:- The AO during the course of assessment proceedings, examined the claim of assessee with respect to expenditure on advertisement - the contents of show cause notice and audit report show that the Commissioner of Income Tax solely on the basis of audit objection has invoked his revisional powers u/s.263 - From the order or the show cause notice it is not made out as to how the advertisement expenditure allowed as 'Revenue Expenditure' is erroneous - The Commissioner of Income Tax has gone beyond his jurisdiction in invoking the provisions of section 263 to super-impose his view, on one of the possible views taken by the Assessing Officer in allowing the expenditure claimed by the assessee - the AO has considered the expenditure claimed by the assessee and after seeking explanation, accepted the claim of the assessee – AO has taken fairly possible view for treating the advertisement expenditure as 'Revenue Expenditure' - the order of the AO cannot be termed as 'erroneous'. Rather, CIT without independent application of mind has replicated audit objections in the show cause notice issued u/s.263 - In SHRI JASWINDER SINGH Versus COMMISSIONER OF INCOME TAX-II [2012 (6) TMI 543 - ITAT CHANDIGARH] it has been held that exercise of revisional power on the basis of audit objection is not tenable in law – thus, the CIT without examining the records and proper application of mind has invoked the provisions of section 263 in disallowing the advertisement expenditure claimed by the assessee - There is nothing on record to suggest that the order of AO is not sustainable in law – the order of the CIT is set aside – Decided in favour of assessee.
|