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2023 (8) TMI 156 - ITAT PUNERevision u/s 263 by CIT - scrap sale undisclosed - Apart from `Other income’, only one item has been shown as “Sales (net)” - HELD THAT:- There was collection of tax at source by the assessee, there was a corresponding receipt from sale of scrap at Rs. 88.06 lakh, which ought to have been included in the total sales of the assessee. There is no specific mention of this amount on the face of Profit and loss account. AO did not enquire into this aspect of the matter and simply passed a five-lined assessment order observing that the case was selected for Complete scrutiny assessment on the issue of “Non furnishing of quantitative details”. Thereafter, he records that “On above issue, no addition is made” and eventually notes that “the assessment of income is done as per computation sheet and the sum payable is determined as per the demand notice”. Neither, there is any discussion about the scrap sale in the assessment order nor any such issue was taken up by the AO during the course of scrutiny assessment proceedings. This shows that an important aspect of the matter about the inclusion of scrap sale in the total sales, remained to be examined by the AO, which is a clear-cut case of non-application of mind. This action of the AO, in our considered opinion, rendered the assessment order erroneous and prejudicial to the interest of the Revenue Pr.CIT was right in holding the assessment order to be erroneous and prejudicial to the interest of the Revenue justifying revision. Decided against assessee.
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