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TMI Blog2014 (6) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... g exemption u/s 10BA of the Act of Rs. 1,58,00,224/- as against which assessment was completed u/s 143(3) of the Act on 28.12.2011 determining the total income at Rs. 65,73,000/- by making trading addition of Rs. 5 lakhs and restricting the exemption u/s 10BA of the Act to the tune of Rs. 1,09,86,112/- as against claimed at Rs. 1,58,00,224/-. Subsequently, the ld. CIT(A) called for assessment records and noticed that the assessee had given interest free advances to M/s Traditional Handicrafts Centre amounting to Rs. 1.47 crores. Similarly, the advancesof Rs. 82.50 lakhs was given to Smt. Gulab Gupta. From these advances, no interest has been charged by the assessee whereas in the profit and loss account, the assessee has debited interest am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ld. CIT issued notice u/s 263 of the Act on 17.12.2013. On behalf of the assessee, all the above points were Refuted and it was stated that the A.O. had made full enquiry to his satisfaction on the impugned points and has passed order after application of his full cautious mind. He argued that the A.O. has verily examined the issue of advances given to M/s Traditional Handicrafts Centre and Mrs. Gulab Gupta regarding the claim made u/s 10BA of the Act. Also the ld. CIT has made similar observations and finally he has found that in all the above three issues, the A.O. has not made enquires and has also not applied correct provisions of the Act, particularly section 36(1)(iii) of the Act, section 29 r.w.s 37 of the Act and 10BA of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... certain trading addition and disallowed the claimed u/s 10BA on DDB and VKGUY, hence there was no jurisdiction of learned'"CfT- 1, Jodhpur to review said assessment order of assessee. Hence order passed by the learned CIT-1, Jodhpur u/s 263 is illegal as well as against the facts and against the natural justice. (3) THAT even after issuing the show cause notice by the learned CIT-1, Jodhpur, the assessee has given the reply together with the documentary evidences on the all the three points mentioned in the said order u/s 263 but the learned CIT-1, Jodhpur has not appreciated time to time replies and details given by the assessee. Even the many relevant facts mentioned in the reply ignored because he was bent upon to reopen the case u/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mes to the above conclusion on the basis of the 'material' that the order of the Assessing Officer is erroneous and also prejudicial to the interests of the Revenue, the CIT is empowered to pass an order as the circumstances of the case may warrant. He may pass an order enhancing the assessment or he may modify the assessment. He is also empowered to cancel the assessment and direct to frame a fresh assessment. He is empowered to take recourse to any of the three courses indicated in section 263. So, it is clear that the CIT does not have unfettered and unchequred discretion to revise an order. The CIT is required to exercise revisional power within the bounds of the law and has to satisfy the need of fairness in administrative action and f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opted one of the courses permissible under law or where two views are possible and the Assessing Officer has taken one view under with which the CIT does not agree, it cannot be treated as an erroneous order, unless the view taken by the Assessing Officer is unsustainable under the law. (vi) If while making the assessment, the Assessing Officer examines the accounts, makes enquiries, applies his mind to the facts and circumstances of the case and determines the income, the CIT, while exercising his power under section 263, is not permitted to substitute his estimate of income in place of the income estimated by the Assessing Officer. (vii) The Assessing Officer exercise quasijudicial power vested in him and if he exercise such power in ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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