TMI Blog2017 (4) TMI 299X X X X Extracts X X X X X X X X Extracts X X X X ..... was not satisfactory and did not explain all the facts. The Income Tax Appellate Tribunal on the basis of this finding of fact correctly recorded by it has held that the present case is one of total lack of enquiry and by placing reliance on the decisions rendered by the Supreme Court in the cases of Malabar Industrial Co. Ltd. (2000 (2) TMI 10 - SUPREME Court) has recorded a conclusion that such an order is erroneous and prejudicial to the interest of revenue - Decided against assessee. - I.T.A. No. 35/2017 - - - Dated:- 3-4-2017 - Hon'ble Shri Justice R.S. Jha And Hon'ble Shri Justice A. K. Joshi, JJ. For the Appellant : Shri G.N. Purohit, Senior Advocate with Shri Abhishek Oswal, Advocate For the Respondents : S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hence the appellant has filed this appeal on the following substantial questions of law. (i) Whether the Tribunal is correct in law in upholding the order of the Commissioner of Income Tax-1, Jabalpur without any sound basis and that the finding of the Tribunal is perverse? (ii) Whether the Tribunal was correct in law in upholding that the order passed by the CIT-1, Jabalpur which has been passed without considering the documents on record and without providing reason as to how the order passed by the Assessing Officer is erroneous and prejudicial to the interest of the Revenue? 4. The learned Senior Counsel appearing for the appellant, taking us through the substantial questions of law framed by him as aforesaid, submits t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s extended by the learned Senior Counsel appearing for the appellant, we proceed to examine as to whether there is a finding recorded by the authority concerned in respect of the issue that the order passed by the Assessing Officer in the present case is erroneous as well as prejudicial to the interest of revenue. 7. From a perusal of the impugned order passed by the Income Tax Appellate Tribunal, specifically paragraphs 4 to 4.8, it is apparent that the Income Tax Appellate Tribunal has examined the record and has arrived at a finding that the present case is one where the Assessing Officer has not conducted any enquiry or applied his mind to the voluminous return and documents filed by the appellant while passing the order of assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... him, he cannot be punished for lack of application of mind or enquiry by the Assessing Officer. Be that as it may, in the present case this Court is only required to examine the correctness of the exercise of power under Section 263 of the Act. On a careful perusal of the record, it is apparent that the Commissioner of Income Tax as well as the Income Tax Appellate Tribunal both have recorded a finding to the effect that though the records were filed before the Assessing Officer and a detailed questionnaire was also issued to the appellant by the Assessing Officer to which a reply was filed by the appellant in that regard, the Assessing Officer did not apply his mind nor did he conduct an enquiry into the matter although he has recorded in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant- company was not placed before the Assessing Officer. Thus, there was no material to support the claim of the appellant that the said amount represented compensation for loss of agricultural income. He accepted the entry in the statement of the account filed by the appellant in the absence of any supporting material and without making any inquiry. On these facts the conclusion that the order of the Income tax Officer was erroneous is irresistible. We are, therefore, of the opinion that the High Court has rightly held that the exercise of the jurisdiction by the Commissioner under Section 263(1) was justified. The same view in similar circumstances, has again been taken by the Supreme Court in the case of Commissioner of Income Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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