TMI Blog2010 (10) TMI 867X X X X Extracts X X X X X X X X Extracts X X X X ..... ment order unless the decision is held to be erroneous. CIT on perusal of the records opined that the estimate made by the concerned officer was on the lower side and left to the CIT, he would have estimated the income at a higher figure than the One determined by the ITO. That would not vest the CIT with powers to re-examine the accounts and determine the income himself at a higher figure. This is because the ITO has exercised the quasi judicial power vested with him in accordance with law and arrived at a conclusion and such a conclusion cannot be termed to be erroneous simply because the CIT does not fully satisfy with the conclusion, therefore, quash the order passed by CIT, the appeal filed by the assessee is allowed. - ITA NO. 210 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -cause notice on several points, the learned CIT directed the AO to determine the assessee's total income as under : "5.1 After taking into account the discussion held from para 4.3 to para 4.12 regarding examination of labour charges, I order to make further disallowance of Rs. 7,27,756 out of labour charges and accordingly assessed income of the assessee in the order under Section 143(3) dt. 24th June, 2008 would be enhanced as worked out below : Gross total income of the assessee (as worked out in order dt. 24th June, 2008) Rs. 6,66,339 Further disallowance as para 4.1 Rs. 7,27,756 Revised gross total income Rs. 13,94,095 Less : Deduction under ss. 80C and 80D (as worked out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the trading account along with the bills and vouchers, details of labour expenses, details of contractual receipt with their proof. Under item No. 6, assessee was required to furnish the copies of account of expenses claimed in P L a/c including salary, bank charges, interest, miscellaneous and other expenses on contract, water and electricity expenses, rent of JCP and dumper rent of roller, printing and stationery, royalty expenses, staff welfare expenses, telephone expenses, travelling expenses, sales-tax expenses and depreciation. The details required by the AO were furnished before the AO, and AO examined and verified the same and thereafter, passed the assessment under s. 143(3) dt. 24th June, 2008. In the assessment, the AO disallow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allow labour expenses only to the extent of 29.45 per cent of total turnover, which have no scientific basis. Therefore, the CITs calculation that labour charges is to be disallowed at Rs. 8,27,726 is totally based on his assumptions and presumptions and cannot be made a basis invoking his jurisdiction under section 263 of the Act. Merely because the AO has decided to disallow sum of Rs. 1 lac on ad hoc basis after making necessary enquiry, that by itself, cannot be a ground to invoke powers under section 263 conferred upon CIT. It is well settled that section 263 does not visualize a case of substitution of the judgment of the CIT for that of the AO, who passed the assessment order unless the decision is held to be erroneous. Cases may be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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