Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (7) TMI 374 - AT - Income TaxRevision u/s 263 - freight receipts undisclosed - addition on account of net profit - Held that:- Not only the AO had made enquiries during the course of scrutiny assessment proceedings but also the assessee gave specific replies which were supported by documentary evidences. Yet, the CIT, in his wisdom, not only proceeded with his fallacious view but also computed the addition on account of net profit at ₹ 26,81,028/- to be added to the total income of the assessee from business. - No error in the assessment order which could make it erroneous and prejudicial to the interest of the Revenue which could have prompted the CIT to assume jurisdiction u/s 263 of the Act. Therefore, to this extent, the order of the CIT is bad in law and on facts of the case in hand. Insurance claim receivable - Held that:- CIT is of correct opinion that insurance claim was not received in A.Y 2007-08 and since the assessee is following the mercantile system of account, he was liable to credit insurance claim receivable in profit and loss account on accrual basis Non verification of TDS details in respect of 10 persons to whom total freight paid to hire tanker owners totalling to ₹ 84.24 lakhs - Held that:- A perusal of the assessment order vis a vis the enquiry made during the assessment proceedings show that the AO did not make any enquiry on these issues and the CIT has rightly assumed jurisdiction u/s 263 of the Act and has rightly set aside these issues to the file of the AO for proper verification. Therefore, to the extent of these issues, we do not find any infirmity in the order framed u/s 263 of the Act and accordingly to this extent the order of the CIT is confirmed. Thus on the first issue, the CIT has wrongly assumed jurisdiction u/s 263 of the Act and to that extent the order of the CIT is set aside and that of the AO is restored. On the other two issues, the order of the CIT is upheld. - Decided partly in favour of assessee.
|