TMI Blog2022 (7) TMI 599X X X X Extracts X X X X X X X X Extracts X X X X ..... ed amount. Considering the factual position the tribunal held that the twin conditions required to be satisfied for invoking Section 263 of the Act was absent and, therefore, the assumption of jurisdiction by the PCIT was held to be bad in law. We note that the PCIT while invoking his power u/s 263 of the Act has proceeded based on conjecture and there is no finding recorded that the books of accounts of the assessee were rejected. Specific issue raised by the assessee that the documents and details were furnished before the assessing officer was not found to be incorrect. Therefore, we are of the view that the tribunal having taken note of the factual position had rightly interfered with the order passed by the PCIT. The learned standin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 (the Act for brevity) is directed against the order dated 22nd January, 2020 passed by the Income Tax Appellate Tribunal, Kolkata, A Bench, Kolkata in ITA No.1027/Kol/2018 for the assessment years 2013-14. The revenue has raised the following substantial questions of law for consideration: i) Whether the Learned Tribunal committed substantial error in law in holding that the purchases other than other expenses , were not disallowed by A.O. in original assessment and assessee had also not produced necessary evidence of purchases before Commissioner in 263 proceedings and thus wrongly placing reliance on cases of Malabar Industrial Co. Ltd. 243 ITR 83 Max India 295 ITR 282. ii) Whether the Learned Tribunal committed s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chases and expenses claimed in the profit and loss account of all two companies and the assessee also agreed to an estimated disallowance of a part of the expenses, the assessing officer completed the assessment by fixing the disallowance at 5% of Rs.84,90,060/-. After the assessment was completed, the Principal Commissioner of Income Tax (Central)-I, Kolkata (PCIT) exercised his power under Section 263 of the Act on the ground that the disallowance of other expenses estimated at 5% as done by the assessing officer was incorrect. A notice was issued to the assessee for which the assessee responded and submitted that during the course of assessment proceedings, the assessee produced all the relevant documents before the assessing officer rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on by the PCIT was held to be bad in law. We note that the PCIT while invoking his power under Section 263 of the Act has proceeded based on conjecture and there is no finding recorded that the books of accounts of the assessee were rejected. Furthermore, the specific issue raised by the assessee that the documents and details were furnished before the assessing officer was not found to be incorrect. Therefore, we are of the view that the tribunal having taken note of the factual position had rightly interfered with the order passed by the PCIT. The learned standing counsel for the appellant placed reliance on the decision of the High Court of Gujarat at Ahmedabad in N.K. Industries Ltd. Vs. Dy. CIT in Tax Appeal No.240 of 2003 etc. da ..... X X X X Extracts X X X X X X X X Extracts X X X X
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