Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (7) TMI 505 - AT - Income TaxRevision u/s 263 by CIT - Failure on the part of AO to make enquires - an order erroneous and prejudicial to the interest of revenue - CIT observed that, unexplained cash credit u/s. 68 and additional depreciation claimed on railway siding not considered by AO which leads to under reporting of income - HELD THAT:- On a perusal of the order of the Pr. CIT, it transpires that the assessee company during the course of the assessment proceedings had neither discharged the onus that was cast upon it as regards proving, viz. (i) identity of the party; (ii) creditworthiness of the party to advance money/security deposit/supply of machinery etc.; and (iii) genuineness of the transaction w.r.t the outstanding unsecured loans in question; nor the A.O had made any enquiry w.r.t the said issue as per the mandate of Section 68 of the Act. In fact, during the course of revision proceedings, it was noticed by the Pr. CIT that the assessee’s counsel had fairly admitted that the A.O while framing the assessment had not called for any confirmation letter for the outstanding liabilities under consideration. It was also observed by the Pr. CIT that the A.O while framing the assessment had not made any enquiry to find out whether the railway tracks were laid inside or outside the factory premises, and had accepted the assessee’s submission without applying the relevant provisions for allowing depreciation on the same. Thus we concur with the view taken by CIT that the failure of the A.O to carry out necessary verifications on both the aforesaid issues had rendered the assessment order passed u/s. 143(3) as erroneous in so far it was prejudicial to the interest of the revenue u/s. 263 - Decided against assessee.
|