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TMI Blog2017 (8) TMI 372X X X X Extracts X X X X X X X X Extracts X X X X ..... uty CIT [2016] 7 ITR (Trib)-OL 236 (Chandigarh)), annexure A-III, passed by the Income-tax Appellate Tribunal, Chandigarh Bench, Chandigarh (in short, "the Tribunal"), for the assessment year 2004-05 : "(i) Whether on the facts and in the circumstances of the present case, the hon'ble Income-tax Appellate Tribunal has erred in setting aside the order, passed under section 263 of the Income-tax Act, 1961 by the Commissioner of Income-tax (Central), Ludhiana whereas the said order contains a concrete finding regarding disallowability of expenditure on account of sales tax and also a specific finding that the assessment order, sought to be revised, was erroneous and prejudicial to the interests of the Revenue ? (ii) Whether on the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th section 143(3) of the Act was completed vide order dated December 29, 2011 at an income of Rs. 9,63,880. A perusal of the Assessing Officer's proposal, for initiating proceedings under section 263 of the Act and on perusal of the assessment records, the Commissioner of Income-tax (Central), Ludhiana (CIT) found the assessment order under section 153A/143(3) of the Act dated December 29, 2011 to be erroneous and prejudicial to the interests of the Revenue. A show-cause notice under section 263 of the Act dated January 2, 2014 was issued to the assessee. The Commissioner of Income-tax noticed that in the profit and loss account, the assessee had claimed expenses of Rs. 1,12,50,000 on account of sales tax included in the selling and dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the appellant-Revenue submitted that the quantum of sales shown by the assessee did not include sales tax and therefore the amount of Rs. 1,12,50,000 claimed on account of sales tax paid under the Compound Levy Scheme was inadmissible. On the aforesaid premises, assumption of jurisdiction under section 263 of the Act was urged to be proper. 5. On the other hand, learned counsel for the assessee argued that the sales tax payment of Rs. 1,12,50,000 under the Compound Levy Scheme was allowable under section 43B of the Act. It was claimed that even in the reply submitted to the Assessing Officer, it was specifically stated that the sales appearing in the balance-sheet were inclusive of sales tax and hence, the sales tax paid was allowable ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e judgment of the apex court in CIT v. Amitabh Bachchan, Civil Appeal No. 5009 of 2016 arising out of S. L. P. (C) No. 11621 of 2009 decided on May 11, 2016- [2016] 384 ITR 200 (SC). 8. In the present case, once the assessee had shown that the sales appearing in the balance-sheet were inclusive of sales tax, there was no occasion to disallow the claim made by the assessee relating to payment of sales tax, on the basis of Compound Levy Scheme. The Revenue was unable to produce any material on record to substantiate that the assessee had excluded the amount of sales tax from the sales. Once that was so, it could not be said that the order sought to be revised was either erroneous or prejudicial to the interests of the Revenue. Thus, both the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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