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TMI Blog2016 (8) TMI 1037X X X X Extracts X X X X X X X X Extracts X X X X ..... particular error in the order of Assessing Officer passed on 19.12.2012 which is passed after proper enquiry, discussions, taking evidence etc. etc. during the assessment proceedings. The commissioner of Income Tax failed to appreciate that Assessing Officer has completed the assessment after detail enquiry, examination of accounts and details of expenses and obtained all necessary evidences etc. etc. and passed order dated 19.12.2012 treating and allowing the expenditure incurred in respect of earning of business income and in the notice it is mentioned by CIT that expenditure has been incurred on exempted income and personal expenditure which is not factually correct as there is no income assessed as exempted income and no personal expen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons dated 9th December, 2014. The ld. CIT did not accept the contention of the assessee and proceeded to pass the impugned order and held that the order passed by the AO is erroneous in so far as prejudicial to the interests of the revenue. He set aside the assessment with a direction to the AO to frame it denovo after making proper enquiry and verification of books of account and other records/documents and after following the directions as given in the impugned order. 3. The ld. Counsel for the assessee Shri MC Bhandari vehemently argued that the order passed by ld. CIT is not justified on the fact that the ld. CIT has failed to consider the binding precedents and also failed to appreciate the facts in right perspective. The ld. Counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct the mistake apparent from record. The ld. Counsel submitted that in the case in hand, the revenue has failed to demonstrate that the order passed by the AO is erroneous and prejudicial to the interest of the revenue. 3.2. On the contrary, the ld. D/R supported the order of the ld. CIT and submitted that so far the excessive claim of deduction is concerned, the assessee has conceded the fact that it has claimed excessive deduction. He further submitted that a perusal of the assessment order would make it clear that the AO has not applied his mind and no enquiry was made with regard to the claim of the assessee related to expenditure and the deduction. 3.3. In rejoinder, the ld. Counsel for the assessee submitted that the AO has in fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Associates, Kota, Brijraj Bhawan Palace Hotel, Mayur Service Station, Kota and Toshakhana, besides interest remuneration from M/s. Mahalaxmi Association, Kota and Toshakhana. All these firms are old firms and assessed to tax since a long time. The same partnership deed continued. From that it is clear that the assessee has stated that he was partner in various partnership firms. In respect of the expenses, the assessee also stated in that reply about the expenditures incurred and deduction claimed. The AO after considering the submissions allowed the claim of the assessee in respect of deduction/expenditure. Now the question arises is whether the AO erred in allowing the expenditure. The ld. Counsel for the assessee has placed reliance on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0,605/-, hence the deduction of Rs. 23,856/- was not allowable and the AO allowed such deduction. 4.1. The contention of the assessee is that on this ground also the ld. CIT was not justified in invoking the provisions of section 263. It is submitted by the ld. Counsel for the assessee that there is no dispute with regard to the fact that out of Rs. 80,605/-, the ld. CIT himself has allowed deduction. It was contended that all details were given to the AO in respect of specific query in point no. 7 of letter dated 29.10.2012 issued by the AO, vide assessee's letter dated 5th November, 2012. The ld. Counsel drew our attention to paper book pages 53-54 in support of this contention. From the details filed in the paper book, it transpired tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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