TMI Blog2013 (6) TMI 476X X X X Extracts X X X X X X X X Extracts X X X X ..... H COURT) wherein held that the proceedings before the AO are quasi judicial proceedings and a decision taken by the AO in this regard must be supported by reasons also being approved by the Hon'ble Supreme Court in(2008 (8) TMI 56 - SUPREME COURT) with the observation that AO should pass a reasoned order. These decisions clearly bring out that the assessment order should be passed with or contain proper reasons on various issues. In the instant case, admittedly, no discussion in the assessment order on the issues pointed out by CIT. Thus no infirmity in the revision order passed by CIT and accordingly upheld. Against assessee. - I.T.A. No. 398/Coch/2011 - - - Dated:- 24-5-2013 - Shri N. R. S. Ganesan, JM And B. R. Baskaran, AM,JJ. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a) should not have been allowed. Hence, the administrative Commissioner initiated revision proceedings under section 263 of the Act. After hearing the assessee, the Ld. CIT set aside the assessment order with a direction to the assessing officer to re-do the same de nova in accordance with law. Aggrieved by the order passed by the Ld. CIT, the assessee has filed this appeal before us. 3. We have heard the rival submissions and carefully perused the record. It is well settled proposition of law that, if there is a failure on the part of the assessing officer to make enquiries on the issues, which are vital in determining the total income, i.e., if there is lack of enquiry, then the assessment order would be rendered erroneous and prejudi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assumption of fact or an incorrect application of law will satisfy the requirement of the order being erroneous. An order passed in violation of the principles of natural justice or without application of mind, would be an order falling in that category. The expression "prejudicial to the interests of the Revenue", the Supreme Court held, it is of wide import and is not confined to a loss of tax. What is prejudicial to the interest of the Revenue is explained in the judgment of the Supreme Court (head note) :- "The phrase 'prejudicial to the interests of the Revenue' has to be read in conjunction with an erroneous order passed by the Assessing Officer. Every loss of revenue as a consequence of an order of the Assessing Officer, cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i High Court, the assessing officer passed a cryptic order dropping the penalty proceedings without giving any reason and hence the said order was revised by the Ld CIT u/s 263 of the Act. The assessee challenged the revision order before the Tribunal and could succeed. The department carried the matter in appeal before the Hon'ble Delhi High Court, which upheld the revision order passed by Ld CIT u/s 263 of the Act for the reasons stated above. The said order of the Delhi High court has been approved by the Hon'ble Supreme Court in the case of Toyoto Motor Corporation (306 ITR 52) with the observation that the assessing officer should pass a reasoned order. These decisions clearly bring out that the assessment order should be passed with o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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