Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (12) TMI 186 - HC - Income TaxAssessment order passed u/s 263 quashed by Tribunal – Commissioner proceeded on wrong facts and presumptions - Assessee submitted copies of accounts duly confirmed by all trade creditors and debtors, whose balances were in excess of ₹ 1 lac – Held that:- The Tribunal has rightly accepted the assessee’s contention that they had furnished confirmations of all the creditors and debtors having a balance of ₹ 1 lac and above - the CIT could not have exercised power u/s 263 - of the Act. Thus the order of the Tribunal is that the Commissioner of Income Tax had proceeded on wrong facts and assumptions – CIT u/s 263 also does not give names and details of any creditor or debtor who had not furnished or given confirmation. The AO waited till the end and took up the assessment proceedings only three months before the end of the limitation period - a detailed questionnaire was only issued in October, 2009 and the first effective hearing was fixed on 26th October, 2009 - even the order sheets between 26th October, 2009 till 23rd November, 2009 are not on record and have not been shown - a reading of the questionnaire would indicate that enormous and magnitudes of details/information were asked for - This would have required time for compilation, affirmation and clarification - The queries were answered by several letters on record - For confirmations, the assessee had to write letters to the creditors and debtors all over the India and wait for their response - The Tribunal has noted that the assessee had submitted bill, invoices, vouchers etc. to the Assessing Officer. Scrutiny assessment order u/s 143(3) of the Act should be presumed and hypothesised as made after due verification and ascertainment of facts - Principle of finality has sound and salutatory basis, but can be disturbed as per the statute and within confines of the provision applicable - the assessee had furnished confirmations from all debtors and creditors, with balances in excess of ₹ 1 lac being a finding of fact that, there is no reason to disturb, the present appeal – Decided against reveue.
|