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2016 (1) TMI 176 - ITAT HYDERABAD

2016 (1) TMI 176 - ITAT HYDERABAD - TMI - Revision u/s 263 - Held that:- Except for some cosmetic charges, the reasons are adopted verbatim by the CIT. In these circumstances, we find that the decision of Jaipur Bench of the Tribunal in the case of Dharmendra Kumar Bansal vs. CIT (2014 (2) TMI 1210 - ITAT JAIPUR), is squarely applicable to the facts before us. Respectfully following the same, we hold that the revision orders passed by the Ld. CIT are not maintainable for want of valid initiation .....

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r of the Ld. CIT under section 263 of the I.T. Act, 1961. 2. Brief facts of the case are that the assessee is a partnership firm. There was a search and seizure operation under section 132 of the I.T. Act in the case of M/s. MBS Jewellers P. Ltd., and its group cases on 11.03.2010. During the course of search, certain documents were found and seized relating to M/s. Aashi Plywood Industries i.e., assessee herein. Accordingly, notice under section 153C was issued by the A.O. to the assessee on 22 .....

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with section 153C for the A.Y. 2010-11 making various disallowances and additions. Subsequently, the Ld. CIT called for the assessment records in assessee s case by exercising the powers vested in him under section 263 of the I.T. Act and revised the assessment orders for all the years after issuing notice to the assessee under section 263 of the I.T. Act. Assessee preferred appeals before the ITAT against the orders under section 263. A.O. while giving effect to the order under section 263, ha .....

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n receipt of the order under section 143(3) read with section 263 of the I.T. Act on 25.05.2015, the assessee has come to know that the proceedings under section 263 were initiated by the Ld. CIT pursuant to the recommendations of the A.O. In view of the same, assessee has now raised an additional ground of appeal before this Tribunal raising a ground that initiation of revision proceedings on the recommendations of the A.O. is bad in law. In support of this contention, he has placed reliance up .....

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not need fresh verification of facts by the A.O, we admit the additional ground of appeal and proceed to adjudicate the same as under. 3. In order to verify whether the revision proceedings have been initiated on the recommendations of the A.O. and also whether CIT has applied his mind independently to initiate proceedings under section 263 of the Act, we directed the Ld. D.R. to produce the records of the Ld. CIT under section 263 of the I.T. Act in assessee s case for all the relevant assessm .....

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on of mind of the Ld. CIT to the facts of the case before issuing notice under section 263. Therefore, according to him, the decision of ITAT in the case of Dharmendra Kumar Bansal vs. CIT (supra) is applicable and the revision proceedings are to be declared as invalid. 4. The Ld. D.R. on the other hand, submitted that the recommendations of the A.O. were accompanied by the assessment records and therefore, it is to be presumed that the Ld. CIT has gone through the assessment records to make up .....

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er section 263 vide letter dated 02.09.2011 and the Ld. CIT had issued notice under section 263 on 09.01.2013 and thereafter, passed the order under section 263 of the I.T. Act by holding that the assessment order passed by the A.O. under section 143(3) of the Act without due and proper enquiry was erroneous and prejudicial to the interests of revenue. On appeal, the Tribunal considered the issue at length and at para 9 of its order has held as under : 9. We have considered the submissions of bo .....

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the AO for initiating the proceeding under s. 263 of the Act. In the present case, from para 3 of the impugned order, it is noticed that the notice dt. 9th Jan., 2013 under s. 263 of the Act was issued only on receipt of the proposal under s. 263 of the Act from the ITO, Ward-l (2), Kota and the assessee explained, vide written submission which has been reproduced in para 4 of the impugned order, each and every objection raised by the ITO, Ward-2, Sawai Madhopur. It is well-settled that the lear .....

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ion, learned CIT himself shall apply his mind after examining the record of any proceedings and his satisfaction is must. However, in the present case, the satisfaction was of the ITO (Tech.) who proposed action under s. 263 of the Act, but not of the learned CIT. Therefore, issuance of notice under s. 263 of the Act on the basis of the proposal made by the ITO was void ab-initio; We, therefore, set aside the same. For the aforesaid view, we are fortified by the various judicial pronouncements r .....

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ght to the notice of the Ld. CIT by A.O. in the proforma for initiating proceedings, are reflected as the reasons for revising the assessment order. Thus, it is clear that the Ld. CIT has accepted the proposal of the A.O. without any further application of mind on his part. The Ld. D.R s contention that the proposals are accompanied by the assessment records and therefore, it is to be presumed that the Ld. CIT has independently applied his mind to the said proposal may be acceptable, if the Ld. .....

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A.O. Office of the Commissioner of Income-tax (Central) 7th Floor, Aayakar Bhavan, Basheerbagh Hyderabad - 500 004. F No.CIT(C)/Hyd/263/2013-14 Dated: 14-03-2014 To M/s. Aashi Plywood Industries, Plot No. 5,6,7,18,19 & 20, IDA, Patancheru, Hyderabad. Sir, Sub: Income tax assessment - Your own - Asst Year 2008-09 - Revision of assessment u/s. 263 of the IT Act, 1961 - Issue of show cause notice - Reg. The ACIT-Central Circle-3, Hyderabad has completed assessment u/s. 143(3) r.w.s.153C of the .....

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nterest needs to be charged and offered as income of the Firm. (2) As per Trading a/c there were no sales but assessee firm debited ₹ 32,18,144/- towards sales tax and no supporting challan for the payment of Sales tax was brought on record. Since the above issues have not been verified during the assessment proceedings, I am of the opinion that the Order passed by the Assessing Officer u/s, 143 (3) r.w.s. 153C, dated 25-12-2011 for the AY 2008-09 is erroneous in so far as it is prejudicia .....

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(Central) Hyderabad. Copy to: The Addl. Commissioner of Income tax, Central Range-3, Hyderabad. The Asst. Commissioner of Income tax, Central Circle-8, Hyderabad, with a direction to serve the notice on the assessee. *** Office of the Assistant Commissioner of Income-tax Central Circle-8, Hyderabad F.No.ACIT,CC-8/263/13-14 Dt.14-03-2014 Proforma for initiating proceedings u/s.263 for obtaining the approval of the Commissioner of Income-tax (Central), Hyderabad. 1 Name and address of the assesse .....

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