Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (4) TMI 1743 - AT - Income TaxRevision u/s 263 - allegation of accommodation entry taken from S K Jain Group of concerns case was reopened u/s 148 with the prior approval of the CIT - AO has not taken into consideration the material seized during the search in the case of Sh. S. K. Jain. - HELD THAT:- When we asked the specific query about whether the present directors of those companies were called for and given a statement, the Ld. AR submitted that most of the companies whom shares have been given the current directors were not given statements but the past directors have given statements. The case laws cited by the Ld. AR will not be applicable in the present case as the facts in the present case are different. Pr. CIT has properly invoked the provisions of Section 263 and there is no procedural lapse on the part of the Pr. CIT. In fact, the Assessing Officer though reopened the assessment proceedings did not made any inquiry and there is no mention of the same in the Assessment Order itself which proves that the order is passed without making inquiries or verification which should have been made by the Assessing Officer. Thus, it is prejudicial to the interest of the Revenue and there is loss of revenue. The Pr. CIT after issuing the Show Cause Notice u/s 263 of the Act given ample opportunity to the Assessee for explanation and dealt with the reply/details filed by the assessee in proper manner. Thus, proper opportunity was given by the Pr. CIT to the assessee during the proceedings u/s 263 of the Act. See DENIEL MERCHANTS P. LTD. & ANOTHER VERSUS INCOME TAX OFFICER & ANOTHER [2017 (12) TMI 476 - SUPREME COURT] In the present case the Assessing Officer has though rightly re-opened the Assessment Proceedings has not properly adjudicated the issue for reopening therefore, the Pr. CIT has rightly invoked Section 263 of the Act and passed the order. Therefore, the Order under Section 263 of the Income Tax Act, 1961 passed by the Principal Commissioner of Income Tax is just and proper. - Decided against assessee
|