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TMI Blog2022 (12) TMI 1362X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the Revenue : "(i) On the facts and in the circumstances of the case and in the law, the Hon'ble ITAT erred in holding that the Ld. PCIT has no jurisdiction u/s. 263 of the Act total disregarding the provision of Sec. 263(1) Exp.(2)(a) of the Act as the Assessing Officer failed to make inquires or verification which should have been made on account of reduction in liabilities of Rs. 14,78,098/-? (ii) Whether on the facts and in the circumstances of the case and in law, the Hon'ble ITAT has erred in holding that the Ld. PCIT had no jurisdiction u/s. 263 of the Act in total disregard of the provision of Sec. 263(1) Exp. 2(a) of the Act as the order is made without inquiries or verification on the disallowance of TCS amount of Rs.55 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s is on account of regrouping and recasting of various schedules of balance sheet while finalising the accounts. With regard to reduction of TCS amount, it was contended that the assessee follows exclusive method of accounting of VAT/additional VAT and TCS and therefore, the bills are issued adding amount of TCS and TCS accounts are maintained separately and no deduction of same is claimed in Profit and Loss account. 6. However, PCIT observed that the assessee has not mentioned which head of regrouping and recasting has been netted off in respect of the difference in liability in the opening and closing balance, the balance-sheet and with regard to question of disallowance of TCS amount, it was observed that though the reply of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... verification. The learned counsel for the assessee further, referred Paper Book Page No. 70 to 74 which is copy of balance sheet and notes on accounts, and submitted that the assessee has done regrouping and recasting of various schedules. The learned counsel for the assessee drawn our attention to Paper Sook Page No. 63 which is forming part of audited notes on account and submitted that as per note No. 9, it mentioned that Previous year's figures have been regrouped and /or rearranged whenever necessary. The learned counsel for the assessee also referred Paper Book Page No. 72 to 74 which is reconciliation of liabilities not acceptable. It was submitted that current liabilities were regrouped and figures reflected in Schedule 8,9,10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income has escaped assessment or order being erroneous, because if TCS are considered as part of sale then corresponding debit of TCS was to be claimed the Profit & Loss Account. Hence, there is no revenue loss. In view of these facts and circumstances, we find that the AO has made due enquiries and had taken a plausible view, hence, same, cannot be disturbed by Pr.CIT in the name of verification. Since the AO has made during enquiry and examined the issues, hence, invocation of Expln 2 of section 263 is not justified as same is applicable where the AO had not made enquiry and applied his mind which should have been done in the opinion of Pr.CIT. However, the Pr. CIT has not done any enquiry and not suggested what enquiries were to be carri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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