GST Helpdesk   Subscription   Demo   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (12) TMI 1228 - ITAT HYDERABAD

2015 (12) TMI 1228 - ITAT HYDERABAD - TMI - Revision u/s 263 - unverified purchases - Held that:- A.O., while completing the assessment under section 143(3), has not verified the details of purchases adopted by the assessee and to that extent, the Ld. CIT's order under section 263 holding assessment order to be erroneous and prejudicial to the interests of the Revenue also has been upheld by the ITAT. Further, in the final paragraph of its order, this Tribunal has held that the Ld. CIT was right .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

without making necessary enquiries on such important points connected with assessment would be erroneous and prejudicial to the interests of the Revenue.

From these observations of the Tribunal, it is evident that this Tribunal has held assessment order to be erroneous and prejudicial to the interests of the Revenue and has upheld the order of the Ld. CIT under section 263 in directing the A.O. to re-do the assessment. Though, there is a finding by the Ld. CIT in his order that the A .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

>
"However, the direction of the Ld. CIT in paras 4 and 5 are set aside and the A.O. is directed to re-do the assessment after verification of the details relating to the issue and after affording reasonable opportunity of hearing to the assessee." - MA No. 87/Hyd/2015, ITA No. 751/Hyd/2011 - Dated:- 16-10-2015 - P. Madhavi Devi, JM And S. Rifaur Rahman, AM For the Appellant : Mr K A Sai Prasad For the Respondent : Mr B Kurmi Naidu ORDER Per Smt. P. Madhavi Devi, J. M. Both these M.As are f .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

as failed to consider and verify the purchases from Reliance Industries Ltd., i.e., whether or not they are inclusive of transport charges. He therefore, revised the assessment order by exercising his powers under section 263 of the I.T. Act and directed the A.O. to bring to tax the said sum of ₹ 18,23,885, representing the inflation in purchases debited to the P & L account and to tax the transport charges of ₹ 12,32,779 and also to consider the total CENVAT credits availed by t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

findings of the CIT. 2.1. Aggrieved, assessee preferred an appeal before the ITAT against the order of the Ld. CIT under section 263. This Tribunal vide order dated 31.08.2012 in ITA.No.751/2011 dismissed assessee's appeal stating that the Ld. CIT was right in directing the A.O. to re-do the assessment in view of the fact that the A.O. did not verify the correctness of the purchases etc., Thereafter, the A.O. passed the orders under section 144 read with section 263 of the I.T. Act giving e .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ese circumstances, verification of the data submitted by the assessee would be against the direction of the Ld. CIT under section 263. Taking note of the same, the Ld. CIT(A) confirmed the order of the A.O. by following the decision of this Tribunal in ITA.No.751/Hyd/2011 Dated 31.08.2012 and dismissed assessee's appeal. Aggrieved, assessee is in appeal before this Tribunal and the Tribunal vide order dated 08.01.2014 dismissed assessee's appeal holding that there is no merit in the same .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

eliance Industries or not and whether the purchases declared by the assessee is to be accepted. He submitted that to that extent the order under section 263 was sustainable. However, according to him, the Ld. CIT under section 263 did not verify the details by himself to be satisfied about the allowability or otherwise of the purchases but has directed the A.O. to re-do the assessment in the light of his directions and the A.O. following the same, has adopted the figures pointed out by the Ld. C .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e has submitted that the findings and conclusions in the order under section 263 are self-contradictory in themselves as the Ld. CIT in the earlier paragraph has pointed out the discrepancies in the assessment completed by the A.O. but in the final paragraph has directed the A.O. to re-do the assessment in accordance with the directions and observations given by him. Thus, according to him, the Ld. CIT has committed an error in not directing the A.O. to verify the details before making any addit .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ssee before making the assessment. To that effect, according to him, there is a mistake apparent in the order of the Tribunal. The Ld. Counsel for the assessee further submitted that while giving effect to the order of the Ld. CIT under section 263, the A.O. has merely followed the observations of the Ld. CIT and has not made any verification and both Ld. CIT(A) as well as ITAT have committed mistake apparent from record by not directing the A.O. to verify the details before making any addition. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Tribunal in both the appeals and what the assessee is now seeking through these applications is review of the order which is not permissible under section 254(2) of the I.T. Act, 1961. 5. Having regard to the rival contentions and the material on record, we find that the A.O., while completing the assessment under section 143(3), has not verified the details of purchases adopted by the assessee and to that extent, the Ld. CIT's order under section 263 holding assessment order to be erroneous .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version