Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (10) TMI 624 - AT - Income TaxRevision u/s 263 - difference between value of imports shown by the assessee in the books of accounts and value determined by the CBEC for the purpose of payment of customs duty - As per CIT, AO has failed to consider relevant materials to bring to tax, the difference in value of import made by the assessee for the relevant assessment years which rendered the assessment order passed by the AO is erroneous in so far as prejudicial to the interest of the Revenue - HELD THAT:- According to the PCIT, said difference constitutes unexplained income of the assessee, which needs to be taxed. It was the explanation of the assessee that the aspect of import purchases has been examined by the AO, where the assessee has explained the reasons for difference in purchases. According to the assessee, he had purchased used machinery from abroad, for which, necessary invoices and other related documents have been produced. CBEC has not accepted the invoice value and determined separate value for the purpose of customs duty. Therefore, merely for the reason that the CBEC does not accept the value declared by the assessee, it does not mean that the assessee has understated the imports and difference between actual price paid for imports and value determined by the CBEC is undisclosed income of the assessee. AO after considering relevant facts has rightly concluded that there is no reason to make addition towards difference in value of imports. Since, the AO has already considered the issue and has taken a view, in our considered opinion, the PCIT cannot substitute his view and held that assessment order passed by the AO is erroneous in so far as prejudicial to the interest of the Revenue. Therefore, we quashed the order passed by the PCIT u/s. 263 of the Act. Appeal filed by the assessee is allowed.
|