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2024 (3) TMI 523 - AT - Income TaxRevision u/s 263 - As per CIT huge shortage of PNG claimed by the assessee @ 49.26% of the total purchases of PNG - CIT primarily held that AO has not made proper inquiry - HELD THAT:- During the hearing, A.R. submitted that the details relating to claim of furnishing of PNG was accepted by the Revenue in the earlier assessment as well as in the subsequent assessment years. The assessee is following this as per his business exigencies and therefore there is a shortage of PNG for the assessee not only has given the explanation during the assessment proceedings but also filed the details such as the billing cycle of each house except any few cases as well as consumption which differs from particular family to any other family. This was also reflected in cost audit report which was allowed by the Revenue in earlier assessment year and subsequent assessment year as well. AO has taken cognizance of the records of the assessee such as the details of the consumption units and its audit report along with the submissions of the assessee during assessment proceedings. Thus, this cannot be called as limited verification of the factual aspect of the assessee’s claim. Besides this, the Pr. CIT has not demonstrated in the revisionary power as to how this assessment order is erroneous or prejudicial to the interest of revenue. When the assessee has given all the details which are substantial for the claim of shortage of PNG, the Pr. CIT has observed contrary without giving any specific observation to that effect of the evidences produced during assessment proceedings. Assessee appeal allowed.
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