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TMI Blog2015 (10) TMI 1883X X X X Extracts X X X X X X X X Extracts X X X X ..... rejudicial to the interests of the Revenue and setting aside the same with a direction to do the assessment de novo. 2. Brief facts are that assessee, an individual, engaged in the business of civil contracts filed his return of income on 30.09.2009 admitting income of Rs. 15,18,040/- . Assessment under section 143(3) of the Act was completed on 31.12.2011 determining the income at Rs. 16,83,040/-. Later, Commissioner of Income Tax, Puducherry issued show cause notice proposing to revise the assessment under section 263 of the Act stating that Assessing Officer failed to examine various issues regarding contracts entered into with M/s. IJM (India) Infrastructure Ltd. and Madras Cements Ltd., diesel expenses incurred by the assessee in resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the assessment by making disallowance of Rs. 1,65,000/-. Therefore, he submits that the assessment order passed under section 143(3) is neither erroneous nor prejudicial to the interests of the Revenue so as to invoke the provisions of section 263 of the Act. Referring to page 2 of the assessment order, counsel for the assessee submits that the Assessing Officer in fact disallowed Rs. 65,000/- out of the diesel expenses incurred by the assessee in respect of excavators hired by the assessee for the reason that vouchers submitted for diesel expenses incurred are self-made vouchers. Counsel for the assessee submits that Assessing Officer in fact called for all the details in respect of the issues raised and he has formed an opinion and all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer disallowed Rs. 65,000/- in respect of diesel expenses as he has found that many of the vouchers submitted are self-made vouchers and some vouchers are missing. We also find that since there is a difference in sundry advances with reference to the books of account and balance sheet filed in respect of transport business for a difference of Rs. 1,00,000/- which was offered to tax by the assessee. There is nothing in the assessment order to suggest that Assessing Officer has called for details and examined various issues raised by the Commissioner of Income Tax in the order. Even before us, the assessee could not establish that Assessing Officer has called for details in respect of various issues like contracts entered into w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rement of the order being erroneous. Similarly, orders passed without applying the principles of natural justice or without application of mind are also erroneous". In the instant case, the Assessing Officer while completing the assessment under section 143(3) never applied his mind to various issues as pointed out by the Commissioner of Income Tax in his order. The Assessing Officer has passed the assessment order allowing the claims of the assessee without calling for the details and examining them. Therefore, the order passed by the Assessing Officer without application of mind is certainly an erroneous order and is prejudicial to the interests of the Revenue. The Hon'ble Allahabad High Court in the case of Mannulal Matadeen Vs. CIT (277 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ims of the assessee without application of mind, without examining the correct position of law is certainly an order passed erroneously and prejudicial to the interests of the Revenue. The case laws relied on by the counsel for the assessee are distinguishable on facts and have no application to this case. Therefore, we hold that the Commissioner of Income Tax rightly invoked the provisions under section 263 of the Act directing the Assessing Officer to do the assessment de novo examining all the issues. Accordingly, we uphold the impugned order of the Commissioner of Income Tax and dismiss the appeal of the assessee.
10. In the result, appeal of the assessee is dismissed.
Order pronounced in the open court on 12th Aug ust, 2015. X X X X Extracts X X X X X X X X Extracts X X X X
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