9911796707
TMI Blog2019 (12) TMI 518X X X X Extracts X X X X X X X X Extracts X X X X ..... as custom house agent, clearing & forwarding agent and transport & labour contractor. For the assessment year under consideration, the assessee filed its return of income on 30th September 2015, declaring total income of Rs. 1,06,88,550. The assessment in case of the assessee was completed under section 143(3) of the Act vide order dated 30th June 2017, accepting the income returned by the assessee. After completion of the assessment as aforesaid, learned PCIT, in exercise of power conferred under section 263 of the Act, called for and examined the assessment records of the assessee. After examining the assessment records, learned PCIT was of the view that in the Profit & Loss Account, the assessee has shown net revenue from operations at R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... incur various expenses on behalf of customer and it receives agency charges from the customer. It was submitted, since the assessee had to incur certain expenditure on behalf of the customer, major portion of the sale bill is towards reimbursement of expenses. The aforesaid arguments on merits also did not find farour with learned PCIT. He observed, the Assessing Officer has completed the assessment accepted the returned income without making enquiry and verification which he was required to make. Thus, he ultimately concluded that due to such lapse on the part of the Assessing Officer, the expenditure claimed by the assessee have not been verified which made the assessment order erroneous and prejudicial to the interests of Revenue. Accord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or receivable from them either in advance or after raising the bills. He submitted, the freight forwarding charges shown in credit side of the Profit & Loss Account is net of gross receipt minus expenditure incurred on behalf of the customer for clearing & forwarding their consignment and also includes agency commission. He submitted, the auditor has also certified the aforesaid fact in the audit report in Form no.3CA. The learned Authorised Representative submitted, in course of assessment proceedings, the assessee has furnished voluminous evidences relating to the expenditure incurred on behalf of the customer and has also furnished reconciliation statement to reconcile the income as per books and as per Form no.26AS. He submitted, all sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Further, he submitted, learned PCIT has simply set aside the assessment order and directed the Assessing Officer to allow the expenses after due verification and enquiry. Therefore, no prejudice is caused to the assessee. 5. We have considered rival submissions and perused the material on record. It is evident, assessee's books of account are under statutory audit and the assessee has duly filed audited financial statements along with its return of income. It is also a fact that the assessee is carrying on business as a custom house, clearing & forwarding agent. Therefore, it is required to incur certain expenses on behalf of its customers. From the material on record, it is noticed that in the course of assessment proceedings, the Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orm no.26A. Thus, as could be seen from the facts on record, the Assessing Officer in the course of assessment proceedings, has examined and enquired into the income shown by the assessee in the Profit & Loss Account and has also verified the details of expenditures claimed. Thus, in such circumstances, the allegation of learned PCIT that the Assessing Officer has not made any enquiry on the issues referred to by him is without any basis and contrary to the facts and materials on record. Further, on a perusal of the impugned order of learned PCIT, it is noticed that he has not pointed out even a single defect or deficiency in the evidences filed by the assessee. Even, he has not dealt with a single item of expenditure, which according to h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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