TMI Blog2015 (2) TMI 411X X X X Extracts X X X X X X X X Extracts X X X X ..... its stocks, cannot be characterized as unreasonable. Therefore, to seize upon this or the circumstance that a 60% discount was offered ipso facto was insufficient to take a different view. The various authorities of the Supreme Court in Malabar Industrial Co. Ltd. v. CIT [2000 (2) TMI 10 - SUPREME Court] has highlighted that the power under Section 263 cannot be invoked to correct a mere error of an AO, based upon an incorrect assumption of fact. There has to be something more to hold that the determination is both erroneous and prejudicial to the interests of the Revenue. Case of Sunbeam (2009 (9) TMI 633 - Delhi High Court) cited by the assessee also notices the same aspect. Considering the totality of the circumstances, no substantial q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ₹ 44,01,300/-. The CIT called for the record and was of the opinion that since the surrendered amount had not been disclosed over and above normal income and the surrendered stock was not accounted for properly, in addition to other existing discrepancies, the matter required reexamination under Section 263 of the Act. Accordingly, a notice was issued under that provision, which was resisted by the assessee. The CIT proceeded to finalize the assessment and added considerable amounts, and framed the assessment at a higher amount of ₹ 87,83,468/-. 3. The CIT was considerably influenced by the fact that the assessee had sold its stocks between the period 24.03.2006 and 30.03.2006 at vastly discounted rates. The assessee had u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the newspaper cutting and the sale bill books all this is part of assessment record. Thus, the issues about incorporation of discrepancies during the course of survey, the books were examined. The loss on account of discounted sales was cross verified. Thus the record shows that the assessing officer was conscious of all these facts and called for various information. His satisfaction about assessee's explanation is manifest from the fact that he did not make any addition in this behalf. The assessment order is passed with the approval of JCIT, which is accorded after verification of assessment record. Hon'ble Delhi Court in the case of Sunbeam Auto Ltd (supra) has clearly held that if the application of mind by assessing officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arance sales as well as depressed consideration at which the assessee was forced to sell the stocks. In addition, he relied upon the authoritiy of this Court ruling in CIT v. Sunbeam Auto Ltd. 332 ITR 167 (Del). 6. In the present case, the facts which emerge from the previous discussion are that the assessee s premises were subjected to survey on 15.02.2006. The discrepancies noticed between its books of accounts, the stocks and the excess cash were surrendered by it. The Revenue does not dispute that these were also reflected in the books of accounts presented during the course of assessment. The two circumstances which considerably swayed and ultimately went into the decision of the CIT were that of depressed sales for the period 24.03 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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