Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2015 (8) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (8) TMI 421 - HC - Income TaxScope of revision u/s 263 - as per CIT(A) AO omitted to look into the correctness or otherwise of the apportionment of common expenses to agricultural and non-agricultural segments - Held that:- The facts show that the proportion of agricultural and non-agricultural income/ receipts has been used even while working out the apportionment of expenditure under that head. The previous history not in dispute shows that since 1996-97, the said method is being adopted. It is not in dispute that in the return filed by the assessee (State Government Corporation), the receipts were, accordingly, mentioned and the expenditure for those receipts was, accordingly, apportioned and appropriated. This return has been accepted. As such, it cannot be said that the assessment order does not show any application of mind. The perusal of judgment in the case of CIT v. Rajasthan Financial Corporation (No. 1) [1996 (5) TMI 18 - RAJASTHAN High Court] shows the limited scope available to the Commissioner of Income-tax while exercising the jurisdiction under section 263 of the Income-tax Act, 1961. Here, a long settled practice has been lost sight of and without observing anything in concrete about irrelevance of the method or apportionment being followed, the matter has been sent back. Had the Commissioner of Income-tax noted some facts which necessitated departure from this method, its intervention could have been understood. However, that is not the position here.There was no scope for intervention under section 263 of the Act - Decided in favour of assessee.
|