TMI Blog2014 (1) TMI 1324X X X X Extracts X X X X X X X X Extracts X X X X ..... URT] 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 - the assessment order should be passed with or contain proper reasons on various issues – the CIT would have pointed out the implication on the tax computation if it is decided against the assessee, in which case the assessment order passed by the assessing officer would become prejudicial to the interests of the revenue – the CIT was justified in passing the revision order and thus, no interference is called for – Decided against Assessee. - I.T.A. No. 199/Coch/2013 - - - Dated:- 2-8-2013 - Shri N. R. S. Ganesan, JM And B. R. Baskaran, AM,JJ. For the Petitioner : Shri Shaji Poulose, CA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l purposes or for purposes connected with Agricultural activities. As per the records it is apparent that the assessee is not a Primary Agricultural Credit Society since the Principal business carried out was for Non-Agricultural purposes. It is evident from the records that the Assessing Officer has not conducted any enquiry on such aspects and has allowed the claim of deduction u/s. 80P and status as PACS without proper verification. 3. It is also observed from the records that the net profit of the bank for the Previous Year relevant to A.Y. 2009-10 was arrived at Rs. 82,88,143/- after claiming Reserve for bad and doubtful debts (Rs. 1,07,80,322/-) Provision for leave salary (Rs. 5,28,219), Provision for share on Tourism Co- op. Societ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Assessing Officer renders the order erroneous in so far as it is prejudicial to the interests of revenue." 3. After hearing the assessee, the Ld. CIT held that the assessment order is erroneous and prejudicial to the interests of revenue and accordingly set aside the assessment order with a direction to the Assessing Officer to pass appropriate order as per law after giving sufficient opportunity to the assessee . Aggrieved by the order of the Ld. CIT, the assessee has filed this appeal before us. 4. The Ld. Counsel for the assessee submitted that the assessee is entitled to claim deduction u/s. 80P of the Act and also other deductions mentioned in para 3 of the order of the Ld. CIT. When it was pointed out that the assessment o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er is erroneous in so far as it is prejudicial to the interests of the Revenue, to pass an order upon hearing the assessee and after an enquiry as is necessary, enhancing or modifying the assessment or canceling the assessment and directing a fresh assessment. The key words that are used by section 263 are that the order must be considered by the Commissioner to be "erroneous in so far as it is prejudicial to the interests of the Revenue". This provision has been interpreted by the Supreme Court in several judgments to which it is now necessary to turn. In Malabar Industrial Co. Ltd. v. CIT [2000] 243 ITR 83, the Supreme Court held that the provision "cannot be invoked to correct each and every type of mistake or error committed by the Asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the Supreme Court in CIT v. Max India Ltd. [2007] 295 ITR 282." There may not be any dispute that the revision proceeding shall not lie on the issues on which the Assessing Officer has taken a plausible view after examining and applying his mind on it. If the AO did not make any enquiry on any of the pertinent issue, it will result in lack of application of mind. 7. In the instant case, the assessing officer has passed a cryptic order and it does not contain any discussions on the issues pointed out by the Ld CIT in the revision order. The Hon'ble Delhi High Court, in the case of Toyoto Motor Corporation (306 ITR 49), has held that the proceedings before the AO are quasi judicial proceedings and a decision taken by the AO in this r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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