TMI Blog2022 (4) TMI 1069X X X X Extracts X X X X X X X X Extracts X X X X ..... cally held that the AO has not made any enquiry, inter alia, directed the AO to make fresh assessment When Findings of the ld. CIT was confronted to ld. A.R. of the assessee that whether the AO has conducted any enquiry on the above aspects, no satisfactory reply was forthcoming. From the above, we observe that the Assessing Officer has not made any enquiry and examination of the matter. We also observe that the CIT has directed the AO to make proper enquiry and pass fresh assessment order after giving due opportunity of hearing to the assessee. Hence, we do not find any infirmity in the order of the ld. CIT, which is hereby confirmed - Decided against assessee. - ITA No. 251/CTK/2015 - - - Dated:- 5-4-2022 - Chandra Mohan Garg, Mem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been adjusted in A.Y. 2010-11 in arriving the total income at ₹ 8,78,800/-. He also noticed that tax audit report in form No. 3CD filed in the return of income for A.Y. 2010-11 states that brought forward loss or depreciation at Nil accordingly, the assessee company is not to be allowed to claim any brought forward loss in the return of income for A.Y. 2010-11. The AO has wrongly adjusted ₹ 34,94,402/- as carry forward business loss and unabsorbed depreciation loss while passing the assessment order for A.Y. 10-11. 5. The CIT also noticed that in the balance sheet and cash flow statement for the year ending 31.3.2010, the assessee had received a sum of ₹ 7,30,00,000/- from issue of share capital including share pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee. 8. We have heard the rival submission and perused the record of the case. We find that the ld. CIT relied on various judgments holding that when the AO did not make proper enquiry and accepted the return income of the assessee, the revision order u/s. 263 is justified. On perusal of assessment order u/s. 143(3) of the Act, we observe that there is no discussion in this regard to the points raised by the ld. CIT in the impugned order. We observe that the ld. CIT in the impugned order has categorically held that the AO has not made any enquiry, inter alia, directed the AO to make fresh assessment observing as under: ...In fact In this case there is total non application of mind. When assessee had claimed to have furnished c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l some difference which is not properly explained, causing loss of revenue. If due to an erroneous order of the AO, the revenue is losing tax lawfully payable by a person it will be certainly be prejudicial to the interest of revenue. In this case both the conditions 'erroneous' and 'prejudicial to the interest of revenue' are fulfilled. In view of the above, it is clear that this is a case where no investigation was made by the AO. Reference is made to the rulings given by the Hon'ble Supreme Court in the case of Ramapyari Devi Sarogi Vrs. CIT (1968) 67 ITR 84 (SC) and Smt. Tara Devi Aggarwal Vrs. CIT reported in 88 ITR 323 (SC) (1973) in which the Hon'ble Apex Court has held that lack of enquiry or verificatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Courts held that the Commissioner was justified in cancelling assessment order where the claim made by the assessee in the statement fled before the AO was accepted without making proper enquiry. Further, in the case Malabar Industrial Co. Ltd. Vs. CIT reported in 198 ITR 611 (Ker) it was held that where the AO did not make proper enquiry and accepted the entry in the statements of account filed by the assessee, revision of the AO's order u/s. 263 was justified. In the instant case, on the issues pointed out in show cause notice proper enquiries and verifications were not made by the AO. Because of such failure on the part of the AO, the order passed by him is considered to be erroneous as well as prejudicial to the interests of r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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