TMI Blog2017 (11) TMI 794X X X X Extracts X X X X X X X X Extracts X X X X ..... ability of repairs and maintenance of buildings and whether the same is incurred for the purpose of business of the assessee or whether the same is capital or revenue in nature. We find that absolutely no query was raised or any enquiry was carried out by the AO in this regard. Hence this is a clear case of lack of enquiry on the part of the ld AO for which the 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 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 30.3.2012 declaring taxable income of ₹ 33,70,69,038/- . The assessee filed its audited accounts, tax audit report, computation of total income 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 the ld CIT issued show cause notice u/s 263 of the Act treating the order passed by the ld AO as e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 applicability of section 30 of the Act. Accordingly he held that absolutely no enquiry was carried out with regard to allowability of Repairs Maintenance Buildings by the ld AO in the assessment proceedings and non-enquiry itself would make the order of the ld AO erroneous and prejudicial to the interest of the revenue. Based on these obs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 detailed submissions made by the appellant on facts as well as in legal position of law on allowability of expenditure incurred on rented premises. The Appellant submits that the above grounds are independent and without prejudice to one another. The Appellant desires leave to add to or alter, by deletion, substitution or otherwise, any or all of the above grounds of objections, at any time before or during the hearing of the Appeal. 5. The ld AR stated that the assessee had enclosed the detailed notes to computation of total income which was f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture debited in profit and loss account would be very voluminous. Thereafter the ld AO did not call for any specific items of expenditure for examination. He further argued that similar disallowance was made in Asst Year 2005-06 and the ld CITA had deleted the same and no further appeal was preferred by the revenue against this order to tribunal. The order of the ld CITA was passed for the Asst Year 2005-06 on 4.2.2013 and the impugned assessment 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 re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to the rescue of the assessee as admittedly the said note did not contain any break up of repairs and maintenance so as to warrant further examination by the ld AO. The said note only stated that assessee had incurred expenditure towards rented premises and the same has been debited in the profit and loss account. We hold that there was no occasion for the ld AO to examine the allowability of repairs and maintenance of buildings and whether the same is incurred for the purpose of business of the assessee or whether the same is capital or revenue in nature. We find that absolutely no query was raised or any enquiry was carried out by the ld AO in this regard. Hence this is a clear case of lack of enquiry on the part of the ld AO for which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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