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2022 (4) TMI 545 - AT - Income TaxRevision u/s 263 by CIT - service tax and VAT were not routed through profit and loss account as mentioned in item no. 21 (ii) of Form No. 3CD, the sales shown the assessee were exclusive of these items - HELD THAT:- Such method is regularly followed by the assessee. This fact is not disputed by ld Pr CIT, despite bringing this fact to his notice that assessment order for AY 2010-11 & 2012-13 was passed under section 143(3) and inclusive method was accepted by assessing officer in those years. Even otherwise, inclusive method and exclusive method both are revenue neutral. We further find that the ld. Pr.CIT in his order has not made any comment over the reply furnished by the assessee. Thus, we are of the view that reference in the audit report was a clerical mistake by the auditor of the assessee which was admitted by the auditor by giving his certificate in writing and on verification. As noted above that indirect taxes are routed through profit and loss account and in accordance with inclusive method of accounting. Therefore, the assessment order on second issue is not erroneous or prejudicial to the interests of the revenue. Difference in receipt vis a vis TDS reflected in 26AS - sales were exceeding ₹ 10.00 lacs as reflected in Form 26AS which was not shown in the list of the details of the sales exceeding ₹ 10 lacs during the assessment proceedings - Assessee furnished reconciliation of Form No. 26AS and sales in tabular form, even during the course of assessment proceedings, the assessee reconciled the same with reference to the credit in the bank accounts. The assessee again explained in respect of first three parties viz. Weal Developers, Synergy Developers and Sar Infracon, the advances were received on which the TDS was made for which the sales was accounted in succeeding years in respect of the advances. For the fourth party i.e. Gaurang Yogeshbhai Shah, it was submitted that no advances were received and therefore the sales were shown in the list of sales exceeding ₹ 10 lacs. The fourth party i.e Gaurang Yogeshbhai Shah, who is the proprietor of Tejasvi Construction and the sales were shown in the name of Tejasvi Construction (Gaurang Shah) in the list. The allegation of the ld. Pr.CIT that the sales in respect of Gaurang Yogeshbhai Shah were not shown in the list was wrong. For fifth party i.e. Hazira Lng Pvt. Ltd. the assessee stated that the sales were less than ₹ 10 lacs and therefore were not shown in the list. The amount of ₹ 6,45,286/- as referred by the ld. Pr.CIT in his show cause notice was in respect of Adani Hazira Port Pvt. Ltd. and therefore it was a clerical mistake committed by the ld. Pr.CIT. We find that the assessee has also explained the facts before assessing officer. In our view, the assessing officer after considering the reply of assessee has adopted a reasonable, plausible and legally sustainable view. An assessment order cannot incorporate reasons for making/granting a claim of deduction. If it does so, an assessment order would cease to be an order and become an epic some. The reasons are not far to seek. Firstly, it would cast an almost impossible burden on the Assessing Officer, considering the workload that he carries and the period of limitation within which an order is required to be made; and, secondly, the order is an appealable order. An appeal lies, would be filed, only against disallowances which an assessee feels aggrieved with. In view of the aforesaid factual and legal discussion, we are of the view that the assessment order passed by the AO on the first issue identified by the ld. Pr.CIT is reasonable, plausible and legally sustainable order. In our view, the twin condition as prescribed under Section 263 of the Act has not meet out on the first issue. - Assessee appeal allowed.
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