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TMI Blog2016 (5) TMI 1290X X X X Extracts X X X X X X X X Extracts X X X X ..... c. 153A /143(3) of the Act on 28.3.2013 accepting the returned income. On examination of assessment records, the learned Principal Commissioner observed that the assessment order was erroneous as well as prejudicial to the interest of the Revenue to the extent that assessment was completed without proper inquiry/examination/verification. A show-cause notice under section 263 of the Act was issued to the assessee as to why the assessment order passed may not be considered as erroneous and prejudicial to the interest of Revenue as per the provisions of sec. 263 of the Act. In response, the assessee furnished its reply and objected the proceedings. The learned Principal Commissioner did not agree and after discussing the submissions made by the assessee, he has set aside the assessment order on two issues mentioned in the order impugned, with direction to the Assessing Officer to frame the assessment afresh as per the provisions of the Act after affording the assessee an opportunity of being heard and after making proper making inquiries and verifications. As per the order impugned, the said two issues are (i) acceptance of genuineness and creditworthiness of Rs. 41,50,000 without ver ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to 33 have been placed the details of shareholders, list of transfer, details of unsecured loans as on 31.3.2007 along with confirmation, reply dated 20.2.2013 filed before Assessing Officer along with copy of details of unsecured loans as on 31.3.2007 with ledger accounts. He submitted that these documents were filed before the Assessing Officer as required by him and being satisfied therewith the Assessing Officer did not make any addition doubting the claimed transaction. The Learned AR submitted that the above facts were brought to the notice of the learned Principal Commissioner vide letter dated 17.2.2015 and 04.03.2015 in reply to the show-cause notice issued under section 263 of the Act that the assessee had filed all the details of unsecured loans during assessment proceedings. The Learned AR submitted that while putting the proposal for revision, the Assessing Officer has mentioned that due to oversight/heavy work load, he could not make the addition and he deeply regret for the error. He contended that such type of excuse does not have any value in the eyes of law and at least assessee should not suffer for such type of negligence of a senior officer in the rank of DCIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stablished position of law that provisions laid down under sec. 263 of the Act cannot be invoked merely on the basis that the inquiry conducted by the Assessing Officer was not sufficient or inadequate. In the case of CIT vs. Sunbeam Auto Ltd. (supra), the Hon'ble jurisdictional High Court of Delhi has been pleased to hold that there are judgments galore laying down the principles that the Assessing Officer in the assessment order is not required to give detailed reasons in respect of each and every item of deduction, etc. Therefore, one has to see from the record as to whether there was application of mind before allowing the expenditure in question as Revenue expenditure. One has to keep in mind the distinction between "lack of inquiry" and "inadequate inquiry". It was held that if there was any inquiry, even in adequate that would not by itself give occasion to the Commissioner to pass orders under sec. 263 of the Act, merely because he has a different opinion in the matter. It is only in cases of "lack of inquiry" that such a course of action would be open. Again in the case of ITO vs. DG Housing Projects Ltd. (supra), the Hon'ble jurisdictional High Court of Delhi has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rification and ascertainment of tax. Principle of finality has sound and salutatory basis, but can be disturbed as per the statute and within confines of the provisions applicable. Therefore, it has to be ensure administratively that the Assessing Officer act and proceed promptly, keeping in mind the limitation period and also the factum that the assessee may require time to furnish details, confirmation etc., held the Hon'ble High Court. 8. In view of the ratios laid down in the above cited decisions, when we examine the facts of the present case as to whether the Assessing Officer has conducted inquiry on the issues raised in the order impugned passed under sec. 263 of the Act, we do not agree with the finding of the learned Principal Commissioner that present is a case of lack of inquiry or no inquiry by the Assessing Officer in framing the assessment under section 153A/143(3) of the Income-tax Act, 1961. We find from the record that in the notice issued under sec. 142(1) by the Assessing Officer on 17.12.2012, he has raised specific query regarding the share capital as well as unsecured loans. The requisite details in this regard were submitted by the assessee before the A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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