Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Balar Fabrics Ltd. Versus The Commissioner of Income Tax-1, Jodhpur, Rajasthan

2016 (4) TMI 461 - ITAT JODHPUR

Revision u/s 263 - Held that:- We are live to the provisions of Explanation (2) to Section 263 of the Act which has been introduced w. e. f. 1st June, 2015 wherein it has been explained that the order passed by the AO shall be deemed to be erroneous in so far as it is prejudicial to the interest of the Revenue if, in the opinion of the Principal Commissioner/Commissioner “the order is passed without making enquiries or verification which should have been made”. However, it should be understood 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

to be made by the learned CIT either before the intimation or after the intimation but more specifically its absence has been recorded by the learned Commissioner before passing his order u/s 263 of the Act, we are of the view that the order passed u/s 263 of the Act by the learned CIT is unsustainable - Decided in favour of assessee. - I.T.A.No.524/Jodh/2014 - Dated:- 10-3-2016 - SHRI N. S. SAINI, ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, JUDICIAL MEMBER For The Appellant : Shri Mahesh Gehlot, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

earned CIT DR represented on behalf of the Revenue. 4. It was submitted by the leaned AR that for the relevant assessment year the original return had been filed by the assessee on 14-10-2010. The assessment u/s 143(3) of the IT Act was completed on 31-01-2013. Subsequently, notice u/s 263 of the Act was issued on the assessee on 28- 03-2014 on the ground that the Assessing Officer had not examined/enquired the details of quantity, rate and date the assessee had given for process to Mahalaxmi Co .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

at this stage, submissions made by the assessee in the course of the proceedings u/s 263 of the Act without verification by the A O cannot be accepted. Further, the learned CIT referred to various case laws and had set aside the assessment order passed u/s 143 (3) of the Act on 31-01-2013 on the said two issues and restored back to the file of the A O for examination/enquiry on the lines mentioned in the order. It was a submission that all enquiries had been done and no further enquiry was left .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

eld. At this stage, a specific query was put to the learned D. R. as to what was the enquiry which has been made or caused to be made by the learned CIT on the issues raised in the show-cause notice before he passed the order u/s 263 of the Act. To this, the learned D.R. submitted that the issuance of the show-cause notice to the assessee and consideration of the details submitted by the assessee in the reply was the enquiry done. He vehemently supported the order of the learned CIT. 5. We have .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ing heard and after making or causing to be made such inquiry as he deems necessary, pass such order enhancing or modifying the assessment, or cancelling the assessment and directing a fresh assessment. The provisions of Section 263(1) of the Act provide the following actions:- (1) Call for and examine the records of any proceedings under this Act. (2) If he considers that any order passed therein by the AO is erroneous in so far as it is prejudicial to the interest of the Revenue it requires 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

s going to be taken which could be prejudicial or detrimental to the assessee. (4) After he gives opportunity to the assessee for hearing, he is required compulsorily to make or causes to make such enquiry as he deems necessary. The term deems necessary is open ended. There could be cases where the Commissioner can take a stand that there was no necessity to make further enquiry. If that is the case it should be specifically recorded that the facts emanating from the records requires no further .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n uninhibited liberty. It is for this reason that the Legislature in its wisdom has required the making or causing to be made such enquiry as he deems necessary . The enquiry/ inquiry could be made even before the 263 proceedings are initiated and that would become part of the record. But enquiry/inquiry is the foundation and it must be available to show how the order of the AO is erroneous and prejudicial to the interest of the Revenue. Further, when issues have been examined by the AO then the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| 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