TMI Blog2014 (10) TMI 250X X X X Extracts X X X X X X X X Extracts X X X X ..... out examining the materials produced before him on the merits. The AO had consciously examined all relevant records in accepting the return submitted by the respondent assessee – CIT in spite of his incisive analysis of the factual details, did not find fault with any of the findings of the AO, culminating in the ultimate conclusion that the return of the assessee was acceptable as a whole – CIT did neither reject the said documents/records to be irrelevant, nor lacking in their probative worth - the revisional jurisdiction available to a Commissioner u/s 263 of the Act is essentially circumscribed by the determinant that the order of the AO is erroneous so much so that it is prejudicial to the interests of the Revenue - The word "consid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng vouchers of expenditure, as disclosed in the profit and loss account besides the books of account, which were duly examined. The Assessing Officer, on a scrutiny of the return submitted by the respondent-assessee disclosing its main source of income from gain on investment of shares as well as from trading in shares and from other sources, observed that it was duly supported by necessary evidence. It was recorded as well that complete details of debtors and creditors had been furnished by the respondentassessee and that no adverse material/discrepancies had been noticed during the verification of the books of account maintained by it as well as the details submitted in endorsement thereof. The return of the respondent-assessee was, thus, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al gain, examined whether the respondentassessee was holding the same for a period of more than one year, so as to claim exemption on that count. The Commissioner of Income-tax, however, acknowledged that the learned representative of the respondentassessee had brought to his notice the fact that complete details of longterm gain on sale of shares, had been filed along with computation of income and was available with the Assessing Officer during the assessment proceedings and that the materials at his disposal did contain the date of purchase of the said shares. That the period of holding of the shares involved was more than one year and that those being held as investment and STT being paid while selling the same justified the claim for e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (38) of the Act. With regard to the amount of loan of ₹ 43,28,000, taken by the respondent-assessee from one Smt. Usha Gupta, the learned Commissioner of Income-tax held that the documents and records produced before him in connection therewith, had not been laid before the Assessing Officer earlier. He, thus, concluded that in view of the lack of enquiry and non-application of mind on the part of the Assessing Officer, the assessment was erroneous and prejudicial to the interests of the Revenue. Noticeably, the learned Commissioner of Incometax did not record any categorical finding on any aspect of the assessment made, vide order dated September 25, 2008, that the related conclusion of the Assessing Officer was either factually inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interests of the Revenue, he was not justified to refer the matter back to the Assessing Officer and that too, without examining the materials produced before him on the merits. Learned counsel for the appellant has urged that having regard to the scope of section 263 of the Act, the learned Commissioner of Income-tax was within his jurisdiction to remit the matter to the Assessing Officer bearing in mind the interests of the Revenue and thus, the learned Tribunal erred in law in interfering with his decision. Mr. Sidarth Ranka, the learned counsel for the respondent assessee, per contra, has urged that in absence of any finding whatsoever of the learned Commissioner of Income-tax that any of the conclusions recorded by the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents/records to be irrelevant, nor lacking in their probative worth. It simply remanded the matter to the Assessing Officer observing that these ought to have been laid before him and examined at the time of assessment. It is no longer res integra that the revisional jurisdiction available to a Commissioner under section 263 of the Act is essentially circumscribed by the determinant that the order of the Assessing Officer is erroneous so much so that it is prejudicial to the interests of the Revenue. This statutory enjoinment carves out an extremely constricted ambit of such discretionary jurisdiction. The word considers applied in the statutory provision involved, signifies a genuine satisfaction of that authority that the order of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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