Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (11) TMI 942 - AT - Income TaxRevision u/s 263 by CIT - As per CIT excess purchases debited to the P&L account and short admission of interest income, which are not verified by the AO - HELD THAT:- A perusal of the assessment order clearly shows that the AO has not at all examined the difference in purchases as per P&L account and as per VAT returns and has also not discussed anything regarding the discrepancy in the interest income offered for taxation and the interest income as per From 26AS . Since, there is complete non application of mind by the AO and the assessee has not filed any reconciliation statement at the time of original assessment proceedings, therefore, there is complete non application of mind by the AO to this vital issue. Non application of mind by the AO and non examination of this vital issue in our opinion makes the order erroneous as well as prejudicial to the interest of the revenue and therefore, the ld.PCIT in our opinion is fully justified in invoking the provisions of section 263 As against the interest income as per Form 26AS, the assessee has accounted for the same at less in the P&L account and there is under assessment of interest income which the AO failed to enquire. Therefore, the order passed by the AO in our opinion has become erroneous and prejudicial to the interest of the revenue for which the PCIT is justified in invoking the provisions of section 263 of the I.T.Act. Accordingly, the same is upheld. Directions given by the ld.PCIT to recompute the total income of the assessee by disallowing excess purchases debited to the P& L account and directing the AO to add the interest income in our opinion is not in accordance with law. PCIT should have either examined himself or should have given direction to the AO to recompute the income after verifying the details and decide the issue by giving an opportunity of being heard to the assessee. We, therefore, modify the order of the ld.PCIT to this extent and direct the AO to examine the details and pass appropriate order as per law after giving due opportunity of being heard to the assessee and without being influenced by the direction given by the ld.PCIT at para 8 of this order. Appeal filed by the assessee is dismissed.
|