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M/s Pricewaterhouse Coopers Pvt. Ltd. Versus ACIT, Circle-2 (2) , Kolkata

2017 (11) TMI 794 - ITAT KOLKATA

Revision u/s 263 - CIT justification in invoking revisionary jurisdiction - non examine the allowability of repairs and maintenance of buildings and whether the same is incurred for the purpose of business of the assessee - whether non-enquiry of an item itself would made the order of the ld AO erroneous and prejudicial to the interest of the revenue? - Held that:- We find from the entire paper book filed by the assessee that no query was indeed raised by the ld AO in the course of assessment pr .....

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he revisionary jurisdiction u/s 263 could be invoked by the ld CIT. It has already been held that mere non-enquiry of an item itself would made the order of the ld AO erroneous and prejudicial to the interest of the revenue as has been held by the Hon’ble Supreme Court in the case of Rampriya Devi Saraogi vs CIT (1967 (5) TMI 10 - SUPREME Court) and Tara Devi Aggarwal vs CIT (1972 (11) TMI 2 - SUPREME Court ). When the requisite enquiry that is warranted in the facts of the instant case was not .....

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in M.No. Pr. CIT- 1/Kol/Revision u/s. 263/2016-17/13718-21 dated 16.02.2017 passed u/s 263 of the Act against the order passed by the DCIT, Circle-2, Kolkata [ in short the ld AO] under section 143(3)/144C of the Income Tax Act, 1961 (in short the Act ) dated 20.05.2014 for the Assessment Year 2010-11. 2. The only issue to be decided in this appeal is as to whether the Ld CIT was justified in invoking revisionary jurisdiction in the facts and circumstances of the case. 3. The brief facts off th .....

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me and notes to computation before the ld AO vide letter dated 2.4.2012. The assessee during the course of assessment proceedings filed all such details as were required to be furnished and were called upon to be furnished by the ld AO. The assessment was completed by the ld AO u/s 143(3) r.w.s. 144C of the Act determining total income at ₹ 138,14,36,330/-. The assessee preferred an appeal against the order of the ld AO before the ld CITA against the additions made in the assessment. Later .....

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ambit of Current Repairs and should have been added back treating the same as capital expenditure. The ld CIT observed that this aspect has not been enquired / examined by the ld AO in the assessment proceedings thereby making his order erroneous. The assessee replied that the expenditure were incurred on rented / leased premises and that as far as rented premises are concerned, all expenditure in respect of repairs are allowable and the restriction of current repairs is applicable on owned pre .....

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ding did not bring any capital asset into existence. Hence it was submitted that a plausible view has been taken by the ld AO in this regard in the light of various decisions and accordingly the same cannot be subject matter of revision u/s 263 of the Act. 4. The ld CIT observed that the ld AO had not inquired into the eligibility of interior design and layout of owned office premises, guest houses etc u/s 37(1) of the Act or under any other sections of the Act. The ld AO had not examined the ap .....

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ssessee is in appeal before us on the following grounds:- Based on the facts and circumstances of the case, PricewaterhouseCoopers Private Limited (here-in-after referred to as 'PwCPL' /,the Appellant' /,the assessee') respectfully craves leave to prefer an appeal against the order dated 16 February 2017 issued by the Learned Principal Commissioner of Income-tax - 1, Kolkata ('Ld. Pr. CIT') on the following grounds: 1. On the facts and in law and in the circumstances of t .....

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e facts and circumstances of the case and in law, the Ld. Pr. CIT erred in invoking his jurisdiction under section 263 of the Act on an issue which has been already considered by the Assessing Officer while completing the assessment order dated 20 May 2014 under section 143(3)/144C of the Act. 4. On the facts and in law and in the circumstances of the case, the Ld. Pr. CIT erred in passing the order under section 263 of the Act on the basis of mere conjecture and surmise, without considering the .....

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ed notes to computation of total income which was filed before the ld AO on 2.4.2012 wherein it was clearly stated that the expenditure in the sum of ₹ 1063.07 lakhs towards expenditure for repairs and maintenance of buildings were incurred in repairing and renovation, which included interalia obtaining interior design and layout of the office and incidental expenses on interior work at various buildings and rented property of the assessee. Such expenses were required to keep the office bu .....

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that the ld AO had gone through the same and had made disallowance of the foreign exchange loss while completing the assessment. Hence it should be deemed that the ld AO had duly examined the other points included in the said notes which admittedly included note on repairs and maintenance of buildings. In fact the ld AO called for details of all expenses debited to profit and loss account. The assessee in response thereon requested the ld AO to call for specific items of expenditure which requi .....

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t order was passed by the ld AO on 20.5.2014. Hence the order of the ld CITA for Asst Year 2005-06 was very much available before the ld AO before the date of completion of assessment, which has been duly taken into consideration by the ld AO and that s why he did not deem it fit to pose any query regarding the allowability of repairs and maintenance of buildings. In response to this, the ld DR vehemently relied on the order of the ld CIT and argued that the ld CIT had not given any direction to .....

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before the ld CITA as under :- We find from the entire paper book filed by the assessee that no query was indeed raised by the ld AO in the course of assessment proceedings with regard to the issue of repairs and maintenance of buildings. Infact the ld AO called for details of all expenses debited to profit and loss account at the initial stage of assessment proceedings. The assessee in response thereon requested the ld AO to call for specific items of expenditure which required examination as .....

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