TMI Blog2020 (3) TMI 329X X X X Extracts X X X X X X X X Extracts X X X X ..... he claimed that the A.O. made proper enquiry. Whether the A.O. has made the requisite enquiries ? - It is undisputed that during the accounting year relevant to assessment year under consideration, the assessee has credited ₹ 167,58,34,770/- under the head revenue from operations (gross) i.e. (gross sale of ₹ 196,76,82,602 less royalty of ₹ 29,18,47,831). Pr. CIT gathered from Form H1 prescribed to Indian Bureau of Mines that the assessee had effected total sale of 940,788.270 (MT) of iron ore for a sum of ₹ 202,42,11,422/- and as such gross revenue from operation has been worked out to ₹ 173,23, 63,591 i.e. (gross sale of ₹ 202,42,11,422 less royalty of ₹ 29,18,47,831). The above discrep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was completed u/s.143(3) of the Act determining the total income at ₹ 131,42,28,620/- on 29.12.2016. Thereafter, the ld. Pr. CIT by exercising his power vested under section 263(1) of the Act called for the assessment records and scrutinized the same. On verification, he found that in the profit and loss account for the year ending 31st March, 2014, the assessee has credited ₹ 167,58,34,770/- under the head revenue from operations (gross) i.e. (gross sale of ₹ 196,76,82,602 less royalty of ₹ 29,18,47,831). The ld Pr. CIT gathered from Form H1 prescribed to Indian Bureau of Mines that the assessee had effected total sale of 940,788.270 (MT) of iron ore for a sum of ₹ 202,42,11,422/- and as such gross reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s. 263 mainly on the ground that the A.O. did not make the requisite enquiry with regard to undisclosed receipts of ₹ 5,65,28,821/- and value the opening stock and closing stock of iron ore and dump workings. 6. At the time of hearing before us, Ld D.R. contended that the assessment order to be erroneous and prejudicial to the interests of revenue on the ground that the A.O. failed to make the enquiry which was warranted on the facts of the case. 7. In the case of Gee Vee Enterprises vs. Addl. CIT [99 ITR 375], the Hon ble Delhi High Court held as under :- It is not necessary for the Commissioner to make further inquiries before canceling the assessment order of the Income-tax Officer. The Commissioner can regard the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Co. Pvt. Ltd. vs. CIT [205 ITR 45], the Hon ble Gauhati High Court held as under :- that it was not quite certain whether the tress sold in the previous year relevant to the assessment year were trees standing at the time of acquisition or trees which grew on roots and trunk existing on the date of acquisition or on roots and trunks of trees existing at the time of acquisition and cut subsequently. This was a matter which had to be investigated by the Income-tax Officer after calling upon the assessee to furnish relevant data. The Inspecting Assistant Commissioner had no such data before him in order to enable him to conclude that there was no cost of acquisition. It was also to be considered whether the spontaneous growth required an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee, if the Income-tax Officer without probing into the matter further had allowed the claim of the assessee for weighted deduction and if the Commissioner on the basis of materials formed an opinion that the grant of allowance made by the officer was erroneous and not warranted by law, the jurisdiction of the Commissioner under section 263 of the Act was not ousted. The Commissioner may not have recorded his final conclusion, but the question for exercising the power of revision by the Commissioner is whether the order of the Assessing Officer can be regarded as erroneous and prejudicial to the interests of the Revenue. It may be erroneous in law or in fact. It may be erroneous in the sense that the Income-tax Officer had passed the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e return when circumstances make such an inquiry prudent and the word erroneous in section 263 includes the failure to make such an enquiry. The order becomes erroneous because such an enquiry has not been made and not because there is anything wrong with the order if all the facts stated therein are assumed to be correct. In the instant case, the Assessing Officer failed to make any enquiry in regard to the allowability of the provision for gratuity. As such, the order was erroneous and prejudicial to the interests of the revenue. Therefore, the conditions precedent for assuming jurisdiction under section 263 did exist in the facts of the instant case. 0 12. From the reading of all the above decisions of Hon ble High Courts, i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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