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TMI Blog2022 (5) TMI 834X X X X Extracts X X X X X X X X Extracts X X X X ..... . That having regard to facts and circumstances of the case, Ld. Pr. CIT has erred in law and on facts in assuming jurisdiction u/s 263 of Income Tax Act, 1961 and has erred in holding the assessment order dated 22.12.2017 as erroneous as well as prejudicial to the interest of revenue within the meaning of section 263 read with explanation -2 there under and that too by recording incorrect facts and findings and in violation of principles of natural justice. 2. That having regard to facts and circumstances of the case, Ld. Pr. CIT has erred in law and on facts in cancelling the order passed by the assessing officer u/s 143(3) dated 22.12.2017 with direction to pass an order afresh and that too by recording incorrect fact and findings and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , in exercise of jurisdiction under section 263 of the Act, called for and examined the assessment records of the assessee. On such examination, he found that the Assessing Officer has completed the assessment without carrying out proper enquiry which he should have carried out. Thus, prima facie, he was of the view that the assessment order is erroneous and prejudicial to the interest of Revenue. Accordingly, he issued a show-cause notice to the assessee to explain, as to why the assessment order should not be set aside. 4. As alleged by learned PCIT, in response to the aforesaid show-cause notice issued on 02.03.2021 requiring the assessee to file its reply by 09.03.2021, no such reply was filed by the assessee. Accordingly, he proceeded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... net profit and mismatch in sales turnover. He submitted, in course of assessment proceeding, the Assessing Officer had conducted full length enquiry into the issues for which the assessment was selected for limited scrutiny. He submitted, the Assessing Officer issued statutory notices under section 142(1) and 143(3) of the Act requiring the assessee to furnish the details of commission expenses incurred by the assessee, both in India and abroad. He submitted, after verifying the details of overseas commission along with shipping bills furnished by the assessee, the Assessing Officer completed the assessment having been satisfied that the expenses are genuine. He submitted, insofar as brokerage/commission paid in respect of domestic sales, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order, it cannot be said that the assessment order is erroneous and prejudicial to the interest of Revenue, only because, he has accepted the income returned by the assessee. In support of his contention, learned counsel relied upon the following decision: 1. ITO Vs. DG Housing Projects Ltd. (2012) 343 ITR 329 (Delhi HC) 7. Learned Departmental Representative submitted, no enquiry worth its name was conducted by the Assessing Officer on the issues on which assessee's case was selected for limited scrutiny. Drawing our attention to the assessment order, he submitted, the observations of the Assessing Officer on the limited scrutiny issues are unreasoned and without application of mind. He submitted, when the net profit rate shown by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with all other relevant documents, including shipping bills. Though, in the body of the assessment order the Assessing Officer has not discussed in detail the nature of enquiry conducted by him and the evidences produced by the assessee, however, he nevertheless has mentioned that in response to statutory notices issued from time to time and various order sheet entries, the counsel of the assessee has attended and furnished written replies along with supporting documentary evidences. In fact, in the Office Note appended to the assessment order, a copy of which was obtained by the assessee under Right to Information Act, 2005, the Assessing Officer has clearly and categorically mentioned that he has examined both the issues of large commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntary evidences relating to the commission expenses and the assessee has furnished them, it is not understood what more documentary evidences learned PCIT wanted the assessee to furnish. It is very much evident, learned PCIT has not mentioned the nature of evidences to be furnished by the assessee. Therefore, the direction to the Assessing Officer appears to be in vacuum and without any substance. When all the evidences relating to commission/brokerage paid by assessee both to domestic as well as overseas agents are available on record, what more evidences are required to be furnished by the assessee is beyond comprehension. When the facts on record reveal that the Assessing Officer has made proper enquiry on the issues, on which limited sc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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