9911796707
TMI Blog2013 (6) TMI 661X X X X Extracts X X X X X X X X Extracts X X X X ..... A.Y. 2009-10 u/s 143(3). The same being short is reproduced below: "Income tax return declaring total income of Rs. 6,75,280/- was filed on 30-09-2009 and the same was processed under section 143(1) of the Income Tax Act. Subsequently, the case was taken up for scrutiny. After taking the case into scrutiny, notice u/s 143(2) was issued on 01-04-2010 fixing the case for hearing on 20-04-2010. Notice u/s 142(1) along with questionnaire dated 20-04-2010 calling for information was also issued to the assessee. In response to the afore cited notices Sh. Rajesh Sood and Sh. Deepak Gupta, FCA authorized representative of the assessee, attended and filed written submissions and held discussions. The assessee is a Private limited company and was engaged in the business of development of residential complex namely 'Parkview City-1' and its maintenance. The assessee filed explanations, notes and original evidence on points raised vide notice under section 142(1) dated 20-04-2010. Books of accounts and bills/ vouchers in original were produced. The submissions of the assessee were verified vis-à-vis books of accounts and vouchers etc. After hearing the returned income of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to time and submitted written replies." 2.2. Assessee challenged the validity of proceedings before CIT on the grounds that:- (i) Assessing officer had completed the assessment after making due inquiries. (ii) During the course of assessment on issue of validity, detailed questionnaire was given which was complied by the assessee along with the written submissions. The assessing officer accepted the income of the assessee after due verification of the record, written submissions, descriptions. These findings are correct findings of fact and there is no material on record to suggest that any error was committed while verifying or recording these findings. (iii) Assessing officer has further given a clear finding of fact that assessee filed explanations, notes and original evidence on points raised vide notice u/s 142(1), which are verified. (iv) There is a clear finding of fact that the bills and vouchers in original were produced and the assessee's submissions vis a vis books of account were verified. (v) The order may be short but it consists proper findings, verification and observations thereon, cannot be held to be erroneous and prejudicial to the interests of revenue. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Name, address, share holding pattern, assessment particulars of all directors. (c) Relevant details of all the share holders of the company; number and nature of the bank accounts held by the company along with details of closing balance along with bank reconciliation statement. (d) The details that assessee has not issued any fresh share capital; not taken any secured loan nor taken any unsecured loan. (e) Details of fixed assets, non-adjustment of any MODVAT cr5edit, exchange rate fluctuations; no fresh investment during the year. Complete details of sundry creditors. Details of expenses payable along with detail of payment in subsequent period. (f) Complete details of 'other liabilities'. (g) Details of 'Amount payable towards advance against sale/project Management Security' (h) Details of advance recoverable in cash and security deposits. (i) Complete details of opening and closing stock along with verification with the record. (j) Details of TDS payable and paid. (k) Details of sales and other income. (l) Details of major expenses recorded in the books of accounts i.e. - Construction expenses - Salaries and wages - Auditor remuneration - Printing and stationery ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e time of assessment. c) That the assessee has already submitted details of opening and closing stock vide clause no. 10 of letter dated NIL and the same were verified by the learned assessing officer at the time of assessment. The assessee company has only one project in hand i.e. Parkview City-I, the detailed calculation of closing stock was also given in clause no. 3 of Notes to Accounts attached with Audited Balance Sheet already submitted during assessment proceedings. d) That the assessee has already submitted letter with details of other income amounting Rs.60,58,993/- and the same was duly verified by the learned assessing officer at the time of assessment on following issues: Particulars: Amount 1. Administrative charges received from Flat Buyers 36,69,573 In case of re-sale of flat. 2. Misc. Income Cenvet Credit received against Service tax 18,562 Misc. Income(Charges for cancellation of flat) 1,02,150 Modification charges (Additional work in flat) 13,500 Rental for Airtel Tower 84,000 Rent for BSNL Tower 29,088 2,47,300 3. Registration charges flat(Charges for sale deed) 21,42,120 Total: 60,58,993 e) That the assessee has already su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of assessing officer in respect of account books, inquiries i.e. questionnaire etc. are recorded or not. In this case the assessing officer's order is short and crisp and gives clear cut findings about the various hearings, the assessee's response, verification of accounts, asking of queries and questionnaire, filing of written submissions by assessee holding discussions and his satisfaction about the explanation answer given for inquiries, correctness of accounts, expenses and record. Thus, the assessment order fits in with all legal parameters required for a proper assessment order, giving clear findings and is fully tenable in law. The fact that detailed inquiries were conducted is clearly demonstrated by the copies of the order-sheets record which are part of the record and the CIT had occasion to observe at this while verifying the record, but has not appreciated the same in proper manner. 3.4. It is further pleaded that CIT while exercising jurisdiction u/s 263 cannot give directions in respect of a third party i.e. to proceed u/s 2(22)(e) against a third party i.e. Bestect India Pvt. Ltd., whose record was not before the CIT. Thus the order of CIT is vitiated on this acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficer to decide when to end the inquiry. The learned CIT cannot transgress the jurisdiction under Section 263 of I.T. Act, 1961 by mentioning that no proper enquiry was made. Reliance in this regard is placed on the decision of Hon'ble Agra Bench of ITAT in the case of Rishi Kumar Gupta v. CIT 90 TTJ 645 wherein held that the Assessing officer having made the assessment after enquiry, as admitted by the CIT in his notice as well as in his order u/s 263, he was not justified in setting aside the assessment on the ground that the Assessing officer had failed to make "proper enquiry". 3.5. Further reliance is placed on the order of ITAT Delhi Bench 'H' in the case of The Civil Services Society Vs. DIT(E) (ITA no. 2308/Del/2012 order dated 17-5-2013), observing as under: 5. We have heard rival contentions and perused the material available on record. From the assessment order it no where emerges that the assessment was carried out in hurry. All the relevant findings of the assessing officer are on the record i.e. in respect of completeness of the books of account; the verification of gross receipts; expenditure; compliance of sections 11 & 12 of the I.T. Act; non-violation of section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh court in the case of Anil Kumar Sharma (supra) for the proposition that Hon'ble Delhi High Court has demarcated a distinction between lack of inquiry and inadequate inquiry. The assessee's case in no case is a case of lack of inquiry and even if the worst is assumed against assessee, the revenue may at best can claim it to be a case of inadequate inquiry. This also according to Hon'ble Delhi High Court, cannot be held to be a reason to hold the assessment order as erroneous order which is as prejudicial to the interests of revenue. 6. We have heard rival contentions and perused the material available on record. As the facts emerge, the CIT held the order in question to be erroneous on the ground that the assessing officer did not consider the factual position and did not make inquiries or investigation on the indicated issues. Failure to such inquiries resulted in undue benefit to the assessee which makes the assessment order erroneous and prejudicial to the interests of revenue. Thus, the allegation of the CIT is on the premise that assessing officer did not consider the factual position and there was lack of inquiry or investigation on indicated item. What emerges from the o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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