TMI Blog2017 (7) TMI 1432X X X X Extracts X X X X X X X X Extracts X X X X ..... ent u/s 143(3) of the Act and the details furnished by the assessee in response to this notice clearly shows that the AO was fully conscious of the details of advance received from the customers furnished by the assessee. There are no facts brought out on record to show that further enquiry was required to be made by the AO on the details of advance from the customers furnished by the assessee. We are of the view that order of CIT is a non-speaking order and does not discuss how the order of AO passed u/s 143(3) of the Act was erroneous and prejudicial to the interest of the revenue. In these circumstances, we quash the order passed u/s 263 of the Act and allow the appeal of assessee. - I.T.A. No. 155/Kol/2017 - - - Dated:- 31-7-2017 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... copies of returns. 3. Any other details and/or documents for the purpose of assessment. Please furnish all the above details along with a covering letter, mentioning all points. 4. The AO issued notices u/s 142(1) of the Act dated 07.05.2014 and 17.06.2014 in which the AO had called for several details including the details of advance received from the customers. The assessee gave the following details as demanded by the AO in his submissions dated 03.09.2014 furnished before the AO:- Name of the Tower Annexure Amount Cypress Annexure (i) 1,054,019,234 Conifer Annexure (ii) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s on which deduction u/s 80IB was claimed by the assessee. 6. In the order of assessment u/s 143(3) of the Act the AO has specifically observed as follows on the deduction u/s 80IB(10) of the Act :- 2. During the year, the assessee company is engaged in real estate business. The assessee has claimed deduction under section 80IB of the Act of Rs.83,66,321/- which was duly verified. 7. In para-3 the AO has also observed that the assessee had filed all the details in support of the return which was test checked and placed on record. 8. The CIT in exercise of his powers u/s 263 of the Act was of the view that order of AO passed u/s 143(3) of the Act dated 04.03.2015 was erroneous and prejudicial to the interest of the revenue for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax ('MAT') (including surcharge and education cess) on adjusted book profit was computed at Rs 2,425,890. The assessee has furnished the Form 10CCB (copy re-enclosed as Annexure 2 for your reference) and complete details relating to advance from customers before the learned assessing officer during the course of the assessment proceedings. The deduction of Rs 8,366,321 claimed by the assessee under section 80IB of the Act was granted by the learned assessing officer after due verification. The details of advances were also duly verified by the AO. 10. The CIT, without discussing as to how the order of AO was erroneous and prejudicial to the interest of the revenue in the light of the reply to the show cause notice given by the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee submitted that all the facts with regard to the claim for deduction u/s 80IB(10) of the Act were furnished by the assessee and were examined by the AO. According to him therefore there was due application of mind by the AO on issue of deduction u/s 80IB(10) of the Act. The CIT in the impugned order has not set out as to how and what are the conditions for allowing deduction u/s 80IB(10) of the Act that were not satisfied. According to him therefore the conclusion of CIT that the issue of allowing deduction u/s 80IB(10) of the Act was not properly examined by the AO while concluding the assessment cannot be sustained. 13. With regard to the advance received from the customers, it was submitted that the CIT admits in the impugned order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of the AO also makes reference to all the details having been perused by the AO. In particular there is a specific reference to the examination by the AO of deduction u/s 80IB(10) of the Act. The conclusion of CIT therefore that the AO failed to make proper enquiries before concluding the assessment, cannot be sustained. We are also of the view that the non issuance of notice u/s 133(6) of the Act in respect of advance received from the customers or not making any enquiries thereon by itself cannot be the basis to say that there was a failure on the part of AO to make proper and necessary enquiries. A reading of notice issued u/s 142(1) of the Act by the AO before completing assessment u/s 143(3) of the Act and the details furnished by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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