TMI Blog2017 (3) TMI 383X X X X Extracts X X X X X X X X Extracts X X X X ..... come has been offered prior to the year in which it is sought to be taxed by the Commissioner. These facts could not be rebutted on behalf of the revenue at any stage of the proceedings before us. Clearly, the return of income filed by the assessee in not offering the job work charges in the assessment year 2006-07 when the income has already been offered in the earlier assessment year cannot be said to be erroneous by any stretch of imagination. Consequently, the assessment order passed u/s 143(3) of the Act cannot be said to be suffering from any ‘error’ on this score. Thus, one of the two conditions, as noted above, is clearly not satisfied. The order u/s 263 is, therefore, liable to be struck down on this score alone. In the absence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... charges have not been correctly declared and the receipt arising from labour charges is short declared by ₹ 16,03,521/-. The CIT thus concluded that the income of the assessee has been under assessed to the extent of ₹ 16,03,521/- while framing assessment u/s 143(3) of the Act. He accordingly directed the Assessing Officer under Section 263 to modify the assessment to include the income under assessed as noted above. 4. The assessee is aggrieved by the order of the CIT passed u/s 263 dated 30.03.2011 and is in appeal before the Tribunal. 5. The ld. AR for the assessee Shri Bhavin Marfatia, at the outset, submitted that the assessment order passed u/s 143(3) by the Assessing Officer, which is sought to be impugned by the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . AR pointed out that all these facts pertaining to aforesaid difference in the job work charges were brought to the notice of the AO as well as before the Commissioner in 263 proceedings by way of reconciliation statement and other records. In these circumstances, when the income has been duly recorded and already offered in taxation in the year in which the assessee has raised the bills, cannot be said to suffer from any error per se . Thus, the action of the CIT in usurping the jurisdiction u/s 263 prima-facie is without authority of law and thus requires to be reversed. 6. The ld. DR, on the other hand, relied upon the order of the CIT passed u/s 263 of the Act. 7. We have carefully considered the rival submissions and perused ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the figures of job-work. However, the impugned income has not escaped assessment at all. On the contrary, the income has been offered prior to the year in which it is sought to be taxed by the Commissioner. These facts could not be rebutted on behalf of the revenue at any stage of the proceedings before us. Clearly, the return of income filed by the assessee in not offering the job work charges in the assessment year 2006-07 when the income has already been offered in the earlier assessment year cannot be said to be erroneous by any stretch of imagination. Consequently, the assessment order passed u/s 143(3) of the Act cannot be said to be suffering from any error on this score. Thus, one of the two conditions, as noted above, is clear ..... X X X X Extracts X X X X X X X X Extracts X X X X
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