TMI Blog2012 (2) TMI 403X X X X Extracts X X X X X X X X Extracts X X X X ..... ocate and Shri Jiten Oberoi, CA REVENUE by : Shri S. Krishna, CIT DR ORDER PER B.C. MEENA, ACCOUNTANT MEMBER : This appeal filed by the assessee arises out of the order of CIT, Delhi- V, New Delhi dated 29.03.2010 for the assessment year 2005-06. The grounds of appeal read as under :- 1) That the assumption of jurisdiction by the CIT u/s 263 of the Income-tax Act, 1961 (the Act) is arbitrary, unjust and bad in law. 2) That the assessment order dated 19th December 2007 passed u/s 143(3) of the Act, the subject matter of the proceedings u/ s 263 of the Act, was passed by the AO after making proper enquiries and was in accordance with law. Hence the assumption of jurisdiction by the CIT u/ s 263 of the Act is wrong ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndependent and without prejudice to one another. Your Appellant craves leave to add, alter, amend or withdraw any of the grounds of appeal at the time of hearing. 2. The return of income filed on 31.10.2005. Return was processed under section 143(1) on 06.10.2006. Order under section 143(3) was passed on 19.12.2007. 3. The learned AR submitted that the CIT issued the show cause notice under section 263 to the assessee on various issues. Finally, he directed the Assessing Officer to make the addition of Rs.6,69,540/- being the financial charges incurred on the borrowed funds utilized for acquisition of the property at Sunder Nagar. This property was forming part of the closing stock. The CIT has directed the Assessing Officer to mak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e interest of the Revenue to this extent. The assessing officer is accordingly directed to make an addition of Rs.6,69,452/- to the income of the assessee on this account. The learned AR submitted that the assessment u/s 143(3) was completed on 19.03.2007. The Assessing Officer has asked the details which were furnished by the assessee and after discussion, the assessment was finalized, therefore, invoking the provisions of section 263 by the CIT is not justified. The order passed by Assessing Officer was neither erroneous nor prejudicial to the interest of revenue. The order passed by CIT is based on the change of opinion hence not sustainable in law. Learned AR also pleaded that as per Accounting Standard AS-2 interest and borrowing co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee had under valued the closing stock inventory which had reduced the taxable income. Since Assessing Officer had not inquired about these facts in proceeding under section 143(3), hence, there is no question of change in opinion. Assessing Officer has not made any opinion on this issue. He pleaded that the order of the CIT is justified as the order of the Assessing Officer was not only erroneous but also prejudicial to the interest of revenue. 4. We have heard both the sides. The Assessing Officer made the order under section 143(3) which read as under :- The Return of Income was filed on 31.10.2005 declaring total income of Rs.87,46,659/-. The return was processed u/s 143(1) on 06.10.2006. Later on the case was selected under scru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the Assessing Officer has passed a summary order without looking into the issue of genuineness of transactions relating to sale and purchase of shares of G.R. Industries. It is clear from facts of the case that Assessing Officer has not applied his mind on this issue while passing order under section 143(3). This order is summary order. The relevant facts have not been looked into. In view of these facts, we uphold the order of CIT for directing Assessing Officer to make thorough examination and investigation on this issue. Considering these facts, we sustain the order of CIT and dismiss the assessee s appeal. 5. In the result, the appeal of the assessee is dismissed. Order pronounced in open court on this 6th day of January, 2012 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
