TMI Blog2021 (10) TMI 651X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the details have been filed, some other details were asked to be filed including para-wise details of transportation charges paid, copy of PAN card. This query of the ld. AO was satisfied by the assessee by filing the necessary details. Ld. AO has also issued notices u/s 133(6) of the Act to some of the persons to whom the assessee has paid the transportation charges. All these exercises at the end of the AO are sufficient enough to show that specific information were asked by the ld. AO regarding large expenses. Reply was filed by the assessee. Thereafter, some more information was called for by the ld. AO. Again there was a detailed reply filed by the assessee. AO has conducted enquiry by issuing notice u/s 133(6) of the Act. Ld. AO also made disallowance of expenses appearing in the P L account. All these exercises indicate that there is proper application of mind by the AO on the issue referred in the impugned notice. It cannot be said to be a case of no enquiry. The documents placed before uswhich remains uncontroverted at the end of the ld. D/R are sufficient enough to show that sufficient enquiry was conducted by the AO for examining the issue of large expenses cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rence: Related to the A. Y.2015-16, your case was completed u/s. 143(3) of the Income Tax Act. 1961 on 28 12.2017 at an income of ₹ 14,53,100/- against the returned income of ₹ 11.98.348/-. Your case was assessed making the following additions. (i) Excessive Fuel charge Rs.l,98,520/- (ii) Printing stationary ₹ 24,200/- (iii) Disallowance u/s. 14A ₹ 10,000/- In order to judge the merits of the order passed by the Assessing officer, the assessment records were perused. The records available revealed that one of the criteria for selection of the case was large other expenses claimed in the P L A/c. The same was not examined or enquired into at all by the Assessing Officer while passing the assessment order u/s. 143(3/ of the Income Tax Act. 1961. In view of the above facts, the order passed u/S. 143(3) of the Income Tax Act, 1961 on 28/12/2017for the assessment year 2015-16 appears to be erroneous in so far as it is prejudicial to this point. In order to elicit your reaction, your case is fixed for hearing u/s.263 of the Income Tax Act, 1961 at my chamber at Aayakar Bhawan Poorva, 6th Floor, Room No-601 on 23.12.2019 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [2008] 166 Taxman 188 (SC), CIT vs. Vodafone Essar South Ltd. reported in ITA No. 119/2012 (Delhi High Court) dated 20.11.2012 and CIT vs. Ashish Rajpal reported in 320 ITR 674 (Del). The ld. D/R vehemently relied on the order of the ld. Pr. CIT. 6. We have heard the rival contentions and perused the records and carefully gone through the documents filed before us. Through this appeal, the assessee has challenged the assumption of jurisdiction u/s 263 of the Act by the Pr. CIT. We find that the impugned order of the ld. Pr. CIT has only referred to the sole issue of large other expenses claimed in the P L account been not examined properly by the ld. AO during assessment proceedings by conducting necessary enquiry. Ld. Pr. CIT observed that the ld. AO has not examined the original evidences nor has issued any summon u/s 131 of the Act. 7. Provision of Section 263 of the Act reads as follows: The [Principal Commissioner or Commissioner] may call for and examine the record of any proceeding under this Act, and if he considers that any order passed therein by the 2[Assessing Officer] is erroneous in so far as it is prejudicial to the interests of the revenue, he may, aft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmissioner of Income Tax. 11. In light of the provisions of Sec. 263 of the Act and above stated judicial pronouncements and examining the facts and circumstances of the case we find that the case of the assessee was selected for limited scrutiny in which one of the criteria was large expenses claimed in the P L account. We find that notice u/s 142(1) of the Act was issued to the assessee by the AO calling various information from the assessee which ld. Pr. CIT has himself referred in the impugned order. The assessee having filed a reply has also been accepted by the Pr. CIT. Further, ld. Pr. CIT has also appreciated that notices u/s 133(6) of the Act were issued in the case of four parties to verify the genuineness of transport expenditure. 12. From a perusal of P L account placed at page 6 of the PB we find that the transportation charges incurred during the year are ₹ 9,64,97,865/- whereas in the immediately preceding year the transportation charges were at ₹ 4,17,92,836/-. The figure shows that the transportation charges have doubled in the instant year. However, the turnover of the assessee has also doubled during the year having reached to 10.98 cr. appro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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