TMI Blog2015 (1) TMI 317X X X X Extracts X X X X X X X X Extracts X X X X ..... ere presumptions and surmises nor on suspicion. Just by throwing allegation on the assessment proceedings on suspicion and presumptions, the assessment order is held to be erroneous and prejudicial to the interest of revenue. No enquiry has been done by the ld. CIT. This is not permissible. This view of ours also finds support to the decision of the Hon’ble Jurisdictional High Court in the case of CIT –vs. J.L. Morrison reported in [2014 (6) TMI 154 - CALCUTTA HIGH COURT]. In these circumstances, we are of the view that the order passed under section 263 by the ld. CIT is unsustainable on the facts mentioned and consequently the same stands quashed. - Decided in favour of assessee. - I.T.A. No. 252/Kol./ 2012 - - - Dated:- 11-12-2014 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... drew our attention to page 7 of the order of ld. CIT, wherein it is mentioned by the ld. CIT It is very likely that the assessee has tried to reduce its income by booking fictitious loss on sale and purchase of cotton yarn . He further drew attention to the reference by the ld. CIT that the transactions appeared highly suspicious. It was the submission that the Assessing Officer had done complete verification as was evidenced by the order-sheet notings, which was shown at pages 56 to 58 of the paper book. It was the submission that even before the ld. CIT it was submitted that the books of accounts as al so the audited accounts were placed before the Assessing Officer. The quantitative detail s and the value of the purchase and sale of co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e showcause notice issued by the ld. CIT found at page 1 of the paper book shows that the reason given for the purpose of initiating proceedings under section 263 is because the assessee had set off the loss on sale and purchase of cotton yarn from the interest income and there was no such business in the earlier years and the records allegedly did not show any evidence of having been furnished to support the said claim of the loss nor the Assessing Officer had raised any query or inquiry regarding the genuineness of the loss. A perusal of the order of the ld. CIT passed under sect ion 263 shows that there is no specific finding by the ld. CIT as to how the order is erroneous and prejudicial to the interest of revenue. All that is being sai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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