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2015 (10) TMI 1883 - AT - Income TaxRevision u/s 263 - as per CIT(A) AO failed to examine various issues regarding contracts entered into with M/s. IJM (India) Infrastructure Ltd. and Madras Cements Ltd., diesel expenses incurred by the assessee in respect of excavator, lease hire charges paid to Smt. A.Saraswathi, Pondicherry, Mr. K.S.Subbaraman, Tindivanam and Mr. S.Navaneethakrishnan, Tindivanam @ ₹ 6,00,000/- each and ₹ 1,90,25,860/- debited to income and expenditure account by the assessee in respect of hire charges paid by the assessee and the applicability of provisions of section 40(a)(ia) on such payments, excess funds flow over and above the funds available etc - Held that:- Assessing Officer neither called for any details with regard to various issues raised by the Commissioner of Income Tax in the show cause notice nor made any enquiries before allowing the claims of the assessee while completing the assessment. In the case of M/s. Malabar Industrial Co.Ltd., (2000 (2) TMI 10 - SUPREME Court ), the as held that “an incorrect assumption of facts or incorrect application of law will satisfy the requirement of the order being erroneous. Similarly, orders passed without applying the principles of natural justice or without application of mind are also erroneous”. In the instant case, the Assessing Officer while completing the assessment under section 143(3) never applied his mind to various issues as pointed out by the Commissioner of Income Tax in his order. AO has passed the assessment order allowing the claims of the assessee without calling for the details and examining them. Accordingly, we uphold the impugned order of the Commissioner of Income Tax of revision - Decided against assessee.
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