TMI Blog2011 (5) TMI 1038X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 143(2) of the Act. The assessment order was passed under section 143(3) on 22.08.2007, determining the total income of the assessee at ₹ 5,74,650/-, consisting of salary income of ₹ 5,67,216/-, business income of Rs. Nil and income from other sources of ₹ 17,667/-. 3. On 26.11.2009 the CIT issued notice under section 263 of the Act on the ground that the Assessing Officer had not made the necessary enquiries in respect of seven items which were listed in the notice and he called upon the assessee to show cause why proceedings cannot be taken to revise the assessment on the ground that it is erroneous and prejudicial to the interest of the revenue. The assessee appeared before the CIT from time to time and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue. It is contended that the CIT was merely taking a different view where more than one view was possible. We are unable to agree with the learned representative for the assessee. The notice issued under section 263 shows that in respect of the seven items mentioned therein, the CIT was of the view that the Assessing Officer had not conducted adequate or appropriate enquiries before completing the assessment. The first issue is that though the Balance Sheet of the assessee reflects her 1/3rd ownership in a property in Calcutta, no rental income is shown therefrom. According to the CIT this required further verification. The second issue is that the Balance Sheet reflected rent receivable from a flat in Bombay in the amount of ₹ 27,227 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en the sale price and the cost of certain jewellery sold in the financial year 2003-04 relevant to the assessment year 2004-05. According to the CIT, the actual difference should only be ₹ 47,558/- as seen from the record and that the adjustment made by the assessee appeared to him to be some kind of manipulation of the accounts merely for the purpose of tallying the Balance Sheet. After noticing these seven items, the CIT has stated in the notice that the Assessing Officer while completing the assessment had not taken into account all the relevant issues for consideration. 5. It is true that the assessee submitted all the details relating to the items mentioned in the notice issued by the CIT and attempted to explain them before h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest of the revenue cannot be held invalid. 6. The learned representative for the assessee drew our attention to the notice issued by the Assessing Officer under section 142(1) on 08.02.2007 and the assessee s reply dated 09.04.2007, copies of which have been filed in the paper book and contended that these would show that the assessment had been completed after due enquiry. We have examined the contention. No doubt these papers show the type of enquiries conducted by the Assessing Officer but the notice issued by the CIT has brought out seven items which have to be enquired into further which the Assessing Officer has failed to do. For example, Item No.3 mentioned in the notice issued under section 263 shows that the CIT has taken ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 007. We are not to be understood as finding fault with the Assessing Officer but in the very nature of things there could be certain issues which might have escaped the attention of the Assessing Officer and which should have been enquired into by him. This is what the CIT has pointed out and his decision cannot therefore to be faulted. Merely because some aspects of the return were verified by the Assessing Officer, it cannot be said that the points mentioned by the CIT in the notice cannot again be looked into by the Assessing Officer or that the CIT cannot say that the assessment was erroneous and prejudicial to the interest of the revenue. Once it is established that some aspects of the return were not verified or enquired into by the A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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