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TMI Blog2022 (6) TMI 726X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s.263 and resorting to provisions of Section 263 against the order passed u/s.143(3) on 15/03/2013 in the case of appellant inasmuch as that the order u/s.143(3) is neither erroneous nor prejudicial to the interest of revenue. 2. The Id. Pr. C.I.T. has erred in law and on facts in not properly appreciating the written submission dtd. 18/02/2015 explaining with documentary proof the various issues mentioned in the show cause notice u/s. 263 dated 22/10/2014. 3. He has erred in law and on facts in observing that, the A.O. has not examined several issues having baring on computation of income and levy of tax and that order passed is without proper verification and without application of mind. 4. He has erred in law and on facts in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... then the same could have been deposited in the bank before issuing the cheque. Secondly, Principal CIT observed that remuneration of Rs. 12,00,000/- was paid to partners of the firm. It was observed, that the assessee had paid a sum of Rs. 6,00,000/- to one of the partners Mr. Varia, in his capacity as Karta of HUF. But, since Mr. Varia is representing his HUF, and HUF cannot be termed as a "working partner', therefore this remuneration of 6 lakhs was required to be disallowed by the AO, which he did not do in the assessment order. The Principal CIT held that though the assessee has submitted before him that this aspect was also part of the earlier years assessment and the issue is pending adjudication before CIT(A), however the AO sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... calling for the corresponding credits of Rs. 2,92,38,879/- approximately and carrying out the necessary reconciliation, which again shows that the order passed was erroneous and prejudicial to the interests of the revenue.Even before the Principal CIT, the assessee could not reconcile the TDS figure with the receipts and hence the order was erroneous and prejudicial to the interests of the revenue. Further, Principal CIT observed that assessee had taken certain amount as advances against labour work and most of which had been repaid within a period of 9 months in cash. The AO failed to examine the applicability of sections 269SS and 269T of the Act and also did not analyse the applicability of section 271D and 271E of the Act in respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... due consideration of the same, the AO had granted relief to the assessee. On the difference in receipt of Rs. 24,73,717/- which was required to be reconciled, the AO during the assessment proceedings had issued notice seeking various details, but however he did not specifically ask for reconciliation in respect of the same. With respect to the TDS claim of Rs. 6,62,553/-, the Ld. counsel for the assessee drew our attention to page 30 of the paper book, and submitted that at para iii), the AO had specifically called for these details and hence there is no infirmity in the assessment order. The AO had after considering the reply of the assessee and made no additions on this count. With respect to the receipt of advances from M/s Varia Engine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ught for various details from the assessee and also for certain matters in respect of which Principal CIT has made certain observations, the Ld. Assessing Officer had sought for details and analysed the issues, for instance one related to payment of remuneration to HUF, in respect of which there was an ongoing litigation in previous years, however we equally note that in respect of certain issues for instance the difference of 24,73,717/- in respect of receipts as compared to party -wise ledger accounts, there was an obvious omission on the part of the assessing officer in not carrying out the necessary reconciliation between total receipts under the head "Sales" with the party -wise accounts reflected as "job work" receipts from the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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