Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2024 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (2) TMI 865 - AT - Income TaxRevision u/s 263 - assessment order framed u/s 147 r.w.s 143(3) questioned - non-verification/non-application of mind by the AO - HELD THAT:- As regards to the non-verification/ mismatching in the amount of freight advances vis-a-vis freight charges shown in the balance sheet as on 31/03/2012, we note that the AO has verified the necessary details during the income escaping proceedings and reached to the conclusion that there is no mismatch in the amount of freight advances shown in the ledger vis-a-vis shown in the balance sheet requiring any addition. There remains no ambiguity to the fact that the AO has applied his mind during the assessment proceedings and therefore assessment order cannot be held as erroneous in so far prejudicial to the interest of revenue on account of non-verification. In holding so, we draw support and guidance from the judgment of Design mate India (P.) Ltd.[2017 (8) TMI 959 - GUJARAT HIGH COURT] As perused the copy of the ledger under the head Cement Freight paid advance the entire amount of such advance was adjusted against the cement freight expenses and therefore, no closing balance shown against such cement freight paid advance in the balance sheet. As such, what we find is this that the Ld. PCIT has referred to the cement freight paid advances ledger showing under the debit column after ignoring credit shown under such advance ledger. PCIT after ignoring the credit entries in such ledger has wrongly assumed that the advances shown under the debit column should match with the advances shown in the balance sheet as on 31/03/2012. However, we find that the approach adopted by the PCIT was erroneous as he cannot pick and choose only debit side of ledger after ignoring credit entries shown in such ledger account. In view of the above, we dis-agree with the findings of the Ld. PCIT. Who will acquire the satisfaction as provided under the provision of 147? - It is the satisfaction of the AO who can touch the issues which came to his/her notice during the proceeding u/s 147 of the Act but same was not subject matter of reopening of the assessment u/s 147 of the Act. PCIT cannot go to touch those issues with respect to which the AO was satisfied in the proceeding’s u/s 147 of the Act, and therefore he chooses not to touch those other issues. Admittedly, the assessee did not appear before the ld. PCIT, yet the ld. PCIT has to pass the order within the framework of the law. In the present case the ld. PCIT has picked up part of the information from the ledger copy discussed above to hold the order of the AO as erroneous in so far prejudicial to the interest of the revenue. In our considered view, such basis is not permissible under the provision of law. Decided in favour of assesse.
|