Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (7) TMI 845 - AT - Income TaxAssessment under section 144A - assessee challenged the orders passed by the AO under section 144 of the Act on the ground that due to personal reasons of the Consultant of the assessee necessary details could not be furnished which resulted in exparte assessment by rejecting retuned loss which is not in accordance with law - Scope of revision u/s 263 - Held that:- The direction given by the Commissioner has to be understood in the context/setting in which such direction is given; in the instant case the show cause notice was issued on specific items and upon calling for the details the Commissioner was satisfied that the AO has not made proper enquiries with regard to certain items which were specifically listed out in the order passed under section 263 of the Act and in this background the matter was set aside with a direction to the AO to make a fresh assessment and thus it has to be assumed that the direction was limited to the issues which were considered by the Revisional Authority. Such being the case the AO has no jurisdiction to touch upon a fresh issue which does not emanate from the notice issued by the Commissioner under section 263 of the Act, while making assessment under section 143(3) r.w.s. 263 of the Act. In the instant case the AO had not treated the entrance fees as revenue receipt despite the fact that the assessee, in the audit report annexed to the return of income, furnished the details with regard to the receipt of entrance fees from members of the club and the mode of recording the same in the books of account. Such being the case it could not have been considered in the proceedings under section 143(3) r.w.s. 263 of the Act. We, therefore, hold that the addition, towards entrance fees, made by the AO, in the proceedings under section 143(3) r.w.s. 263, is beyond the jurisdiction of the AO and therefore deserves to be deleted and we direct the AO accordingly. Though the learned CIT(A) has disposed of the appeals on merits, by following the decision of the Hon'ble Bombay High Court in the case of Diners Business Services P. Ltd.[2003 (4) TMI 56 - BOMBAY High Court] , we need not have to go into the nature of the entrance fees at this stage since the same cannot be subject matter of consideration in the proceedings under section 143(3) r.w.s. 263 of the Act. Addition of ₹ 1 lakh confirmed by the learned CIT(A) under section 14A r.w. Rule 8D in the order passed under section 144 - Held that:- Having regard to the circumstances of the case we accept the plea of the assessee and delete the impugned addition. With regard to the appeal filed by the assessee against the order passed under section 144 of the Act for A.Y. 2006-07 the plea of the assessee was that the learned CIT(A) has no jurisdiction to add the annual subscription of ₹ 15,85,940/- since that was not the subject matter of consideration by the AO under section 144 of the Act. In this case also there is no specific mention about the addition made in the proceedings under section 144 of the Act. Therefore it cannot be inferred that the Commissioner has made the impugned addition afresh while disposing the appeal arising out of the order passed by the AO under section 144 of the Act. We, therefore, do not find any merit in the contention of the assessee. However, going by para 4.1 in the order passed by the CIT(A) it has to be assumed that the CIT(A) has considered this issue. We, therefore, set aside the order of the CIT(A) to that extent since it only arises out of the order passed under section 143(3) r.w.s. 263 of the Act.
|