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2020 (10) TMI 612 - AT - Income TaxRevision u/s 263 - assessee has made payment to persons specified u/s 40A(2)(b) for purchase of Grey Cloth, which falls under the definition of specified domestic transactions - Whether matter could not be referred to the Ld. TPO? - HELD THAT:- Admittedly for some reason or the other the actual Audit Report of the assessee in Form 3CB-3CD was not made available before the Ld. AO and, thus, the fact of making payment to the persons specified under Section 40A(2)(b) for purchase of gray as mentioned in the said Audit Report could not be considered. Consequentially the matter could not be referred to the Ld. TPO in terms of the CBDT instruction. Needless to mention that the AO has not considered the reason for scrutiny selection as per CASS and failed to conduct necessary enquiry for the reason as narrated hereinbefore. We, therefore, find substance in the argument advanced by the Ld. DR. Mr. Sharma. Also we do not appreciate the submission made by the Ld. AR in support of his case. Though the said 3CB-3CD report was submitted through electronic media on 30.09.2014 we have to consider that during that relevant point of time when filing of documents through electronic media was introduced it is quite natural that without having expertise knowledge every person in the department is expected to Act accordingly. When the Ld. AO has requisitioned the said Audit Report of the assessee, we failed to understand as to how Audit Report of other persons can be made available to the AO instead of the assessee’s. No enquiry has been done by the Ld. AO and if any enquiry has been claimed to have been done the same was acted on the basis of the wrong 3CB-3CD report which vitiates the entire proceeding. We, therefore, find no infirmity in the observation made by the Ld. PCIT in setting aside the assessment order considering it erroneous and prejudicial to the interest of Revenue and in passing direction upon the concerned AO to complete proper enquiries and verification de-novo so as to warrant interference. - Decided against assessee.
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