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2021 (10) TMI 349 - AT - Income TaxRevision u/s 263 by CIT - lack of enquiry v/s inadequate enquiry - Unexplained expenditure - as per CIT in support of various expenses like salary and wages, shop rent, license fee and house rent etc. incurred by the assessee there was no details filed by the assessee during the course of proceedings and there was no copy of ledger accounts in respect of these expenses - assessee had made an addition on account of capital of partners and AO had not carried out sufficient verifications in this respect - assessee had not given the details of excise duty tax paid by it and further he held that quantitative records were not maintained - HELD THAT:- Assessee during the course of assessment proceedings indicate that Assessing Officer did carryout the necessary investigation and assessee filed the relevant replies which in our opinion are plausible explanations and therefore Assessing Officer rightly passed the assessment order accepting the explanations of the assessee. Assessing Officer took a plausible view and therefore the order passed by the Assessing Officer is not erroneous and therefore the condition for initiating the action u/s. 263 does not arise as on all the issues on which the ld. CIT took u/s. 263 were examined during the assessment proceedings. Jurisdictional High Court of Allahabad in CIT vs. Krishna Capbox (P.) Ltd. [2015 (3) TMI 17 - ALLAHABAD HIGH COURT] has held where the Assessing Officer made certain queries which were replied to by assessee and after inquiry, being satisfied in respect to any queries replied by the assessee, Assessing Officer accepted declared income and passed the assessment order, Commissioner cannot issue notice u/s. 263 on the ground that Assessing Officer had not made enquiry on certain accepted version of assessee without making any enquiry or verification. As in the case of CIT vs. Vikas Polymers,[2010 (8) TMI 745 - DELHI HIGH COURT] held that there is difference between lack of enquiry and inadequate enquiry and it is only cases of lack of enquiry that the Commissioner is empowered to exercise his revisional powers by calling for and examining the records of any proceedings under the Act and passing orders thereon. CIT was not justified in passing the order u/s. 263 of the Act and directing the Assessing Officer to make assessment order de novo - Decided in favour of assessee.
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