TMI Blog2022 (6) TMI 741X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee has not been able to point out any specific instances where the AO in the original assessment order had carried out detailed enquiries/applied his mind with respect to the various issues pointed out by the Ld. Pr. CIT while passing the 263 order. From the facts on record, we find that there is an evident lack of enquiry by the assessing officer while passing the original assessment order. It was on this basis that Ld. Pr. CIT passed the 263 order after giving due opportunity to the assessee and after taking into consideration the replies filed by the assessee and held that the original assessment order is erroneous and prejudicial to the interests of the Revenue. Accordingly, in view of the above observations, we are of the consid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s 80 P by treating the Income from Sale of Capital Assets as Business income to the tune of Rs. 42,54,286/-. 6. The learned Pr. CIT has erred in law and in facts in rejecting the claim of the appellant of setting off the brought forward business losses to the tune of Rs. 52,10,105/- against the income of A. Y. 2012-13. 7. The Pr. CIT has erred in law and in facts in initiating penalty notice u/s 271(l)(c) of the Act. 8. The appellant craves leave to add, alter or amend the ground of appeal before or at the time of hearing of the appeal. 3. At the outset we note that the appeal is time barred by 243 days. The counsel for the assessee submitted that the assessee company did not have in-house consultants and it was due t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m trading in diesel, oil kerosene, etc. The Principal Commissioner of Income Tax observed that on perusal of the assessment order, it can be seen that the assessing officer had not properly investigated/scrutinized the case with reference to the following issues: (i) The assessee had claimed deduction under section 80P of the Act on interest earned from nationalized bank / Gujarat State Finance Corporation amounting to ₹ 51,43,838/- and not from deposits kept with co-operative society/cooperative bank. The same has to be disallowed as per the provisions of section 80P(2) of the Act. During the assessment, the AO had allowed the aforesaid claim of the assessee without examining this aspect. (ii) During the year, the assessee had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and held that the AO had failed to apply the law correctly on the issues cited above. He accordingly held that the provisions of section 263 of the Act are applicable in the instant facts and set aside the assessment proceedings with a direction to the AO to carry out proper examination, enquiry and verification after allowing reasonable opportunity to the assessee. The assessee is in appeal before us against the above order of the Ld. Pr. Ld. CIT(A). 5.1 At the outset, the counsel for the assessee challenged the initiation of proceedings under section 263 of the Act and drew our attention to pages 332 to 336 of the paper book and argued that the action under section 263 of the Act was solely on the basis of a revenue audit objection as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 80P of the Act was correctly claimed since the funds were kept in GSFC (Gujarat State Finance services Ltd.) on the specific directions by the Government of Gujarat, and therefore the assessee had no discretion to deposit the funds with cooperative credit societies/cooperative banks. Accordingly, Ld. Pr. CIT has erred in holding that in the instant set of facts, claim of deduction under section 80P of the Act was incorrectly allowed by the AO in the original assessment order without examining the facts/incorrectly applying the law. He drew attention to Pages 8 of the Paper Book to point out that the AO had examined the facts during the course of assessment proceedings. However, on analysis of the original assessment order and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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