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2022 (9) TMI 285 - AT - Income TaxRevision u/s 263 by CIT - As per CIT there was decrease in value of trade but there was no corresponding sale of trade items to this effect - HELD THAT:- During the course of proceeding u/s. 263 before the PCIT the assessee failed to file any evidence to support/substantiate the claim of reduced value of closing stock. Perusal of assessment order reveals that no such issue came for consideration before the AO. The assessee refrained from appearing and has not filed any details about the questionnaire issued by the ld.AO and whether any such information was called for by the AO regarding the issue raised/referred in show cause notice u/s. 263. We are unable to find any such documents on record, which could show that this issue of decrease in closing stock came up before ld.AO at any point of time. It is a matter of claiming loss towards trading business and without complete evidence such loss claimed by the assessee cannot be allowed. PCIT has rightly observed/held that the order of the AO u/s. 143(3) of the Act is erroneous and prejudicial to the interest of the revenue. No infirmity in the impugned order passed u/s. 263 of the Act setting aside the assessment order and directing the ld.AO to frame the assessment afresh after considering the observations/findings of the ld.PCIT. PCIT has rightly invoked jurisdiction u/s. 263 of the Act to setting aside the impugned assessment order passed u/s. 143(3) - Decided against assessee.
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