TMI Blog2012 (1) TMI 225X X X X Extracts X X X X X X X X Extracts X X X X ..... itten submission before the AO. The paper book filed before us by the assessee does not contain either query letter or reply submitted before the AO. The details have been filed before the AO during the course of set aside assessment proceedings. As a result of order u/s 263 of the Act, it is clear from the record that the ld. AR has not been able to satisfy us that AO made enquiry during the course of assessment proceedings. If the AO fails to make any enquiry then the order is definitely erroneous and prejudicial to the interest of the revenue. Since the AO has not applied his mind, therefore, we do not feel to record the findings that reconciliation filed by the assessee is correct. Hence, we hold that the ld. CIT was justified in pas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on test check 2.3 The ld CIT vide notice dated 23.02.2010 initiated the proceedings u/s 263 by stating that job charges receipts from M/s. Siddhi Vinayak Fab Tex (P) Ltd. has been shown at ₹ 1,13,40,612/- whereas as per the TDS certificate issued by the payee, the job receipts are of ₹ 1,16,11,484/- and thus there is suppression of receipt by ₹ 2,70,872/- which was not examined by the AO and therefore order passed by him is erroneous and prejudicial to the interest of revenue. In response to the said notice, assessee vide letter dated 10.03.2010 explained that the variation of ₹ 14,55,848/- (wrongly taken by ld. CIT as ₹ 2,70,872/-) between the job receipts from M/s. Siddhi Vinayak Fab Tex (P) Ltd. shown in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s were filed before him. The AO thus completed the assessment in haste without making proper enquiry and therefore the assessment made was erroneous and prejudicial to the interest of revenue. 2.4 Before us, the ld. AR has filed the following submissions:- There is no dispute as to the fact that before the AO, assessee filed require details, produced books of accounts, vouchers of expenses, quantitative details etc. which was examined by the AO and thereafter the results declared by the assessee were accepted. Before the AO the details of the total job receipts of ₹ 1,27,96,460/- (including job receipts of ₹ 17, 762/- from M/s. B. Tex) and TDS certificate showing job receipts at 1,13,40,612/- was available and after consid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT was so particular about the books of accounts he could have very well required the assessee to produce the same more particularly when AO has categorically mentioned that books of accounts were produced and examined by him. Hence for this reason the order u/s 263 cannot be justified. The CIT has observed that entry of discount is passed later on to reduce the income. This observation is without any basis. M/s. Siddhi Vinayak Fab Tex (P) Ltd. is also assessed in his charge only. M/s. Siddhi Vinayak Fab Tex (P) Ltd. has claimed the job charge expenses paid to the assessee at ₹ 1,13,22,850/- only i.e. after reducing the expenses by the amount of discount allowed to it for ₹ 14,55,848/-. M/s. Siddhi Vinayak Fab Tex (P) Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r. We have noticed from the assessment order that the AO issued a detailed query letter on 2-11-2006 and in response to that query letter, the assessee filed the written submission before the AO. The paper book filed before us by the assessee does not contain either query letter or reply submitted before the AO. The details have been filed before the AO during the course of set aside assessment proceedings. As a result of order u/s 263 of the Act, it is clear from the record that the ld. AR has not been able to satisfy us that AO made enquiry during the course of assessment proceedings. If the AO fails to make any enquiry then the order is definitely erroneous and prejudicial to the interest of the revenue. Hon'ble Delhi High Court CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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