TMI Blog2023 (8) TMI 156X X X X Extracts X X X X X X X X Extracts X X X X ..... records that On above issue, no addition is made and eventually notes that the assessment of income is done as per computation sheet and the sum payable is determined as per the demand notice . Neither, there is any discussion about the scrap sale in the assessment order nor any such issue was taken up by the AO during the course of scrutiny assessment proceedings. This shows that an important aspect of the matter about the inclusion of scrap sale in the total sales, remained to be examined by the AO, which is a clear-cut case of non-application of mind. This action of the AO, in our considered opinion, rendered the assessment order erroneous and prejudicial to the interest of the Revenue Pr.CIT was right in holding the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /-. He noticed that the AO had not examined as to whether such sale of scrap amounting to Rs. 88.06 lakh was offered for taxation, since no break-up of sale was examined or called for. In addition, he also dealt with certain other issues, which the AO failed to examine. Aggrieved thereby, the assessee has come up in appeal before the Tribunal. 3. Having heard the rival submissions and perused the relevant material on record, it is seen from the Audit report in Form No.3CD, a copy placed at page 15 of the paper book, that the Auditor reported collection of tax at source amounting to Rs. 88,069/- on the corresponding income of Rs. 88,06,894/-, in column 34(a). Page 5 of the paper book is a copy of Profit and loss account of the assessee fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nion, rendered the assessment order erroneous and prejudicial to the interest of the Revenue. Explanation 2(a) to section 263 inserted by the Finance Act, 2015 w.e.f. 01-06-2015 also provides that where an order is passed by the AO `without making inquiries or verification, which should have been made shall be deemed as an erroneous order insofar as it is prejudicial to the interest of the Revenue. In view of the foregoing discussion, we are satisfied that the ld. Pr.CIT was right in holding the assessment order to be erroneous and prejudicial to the interest of the Revenue justifying revision. 4. In view of the fact that the assessment order is lacking in terms of section 263 on this first issue, being, the non-consideration of sale of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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