Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (12) TMI 459 - AT - Income TaxRevision u/s 263 - assessment u/s 153A - poof of incriminating material unearthed during the course of search - satisfaction of twin conditions being erroneous and prejudicial to the interest of Revenue - assessee has debited expenses towards the shortage of material and is of the opinion that assessee’s primary business is transportation of iron ore and other minerals to various mines to railway siding and loading of the same material into railway rack for onward transportation - whether the assessee has been incurring such expenditure from the earlier years as envisaged before us considering the type of business activity and claim of expenditure Held that:- We are of the opinion on the subject matter of shortage of expenses envisaged by the ld. AR as per the questionnaire in the original assessment proceedings, where the assessee has satisfied the availability of evidence and the assessment was completed - substance in the submissions of AR that the expenditure claimed by the assessee considering the business is normal in nature and the business operations of expenditure is arising out of shortages, which has already been submitted and completed assessments can be interfered with by the Assessing Officer while making the assessment under section 153A only on the basis of incriminating material unearthed during the course of search which are not produced. When no incriminating material was found in respect of shortage of materials in the course of search operations, therefore, the order of revision u/s.263 of the Act by Pr. CIT cannot be sustained. Hence, applying the above ratio decidendi to the present case, we quash the order u/s.263 of the Act passed by the Pr. CIT and allow the grounds of appeal of the assessee.
|