TMI Blog2023 (9) TMI 888X X X X Extracts X X X X X X X X Extracts X X X X ..... explain its case or to comment upon on the reasons recorded for revisionary proceedings wherein the issues were raised by the PCIT so as to establish that the order of AO was not erroneous so far as it is prejudicial to the interest of Revenue in view of Explanation-2 of Section 263 of the Income Tax Act but assessee chooses not to rebut on the same. Under such a scenario since the issue raised in the order under Section 263 of the Act were restored back to the file of AO and the assessee has the opportunity to explain its case and liberty to submit necessary evidence/information before the AO there was no prejudiced caused to the assessee. We, therefore, are of the considered opinion that there was no infirmity in the order of PCIT whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ission of Learned AR that the Counsel of the assessee, Mr. Vijay Jaiswal was unwell during those days thus the appeal couldn t have been prepared for submission, in support certain copies of Medical Reports and Prescriptions from Narayan Institute of Cardiac Sciences were furnished before us. On perusal of such submissions and documents, we found it satisfactory and reasons beyond the control of the assessee by which assessee was prevented to file the appeal in time. Therefore, the request for condonation of appeal of the assessee was considered and permitted to be placed for hearing. 4. The brief facts of the case are that the assessee is a resident who has not filed its return of income for A.Y. 2015-16. The case of the assessee was pi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oceedings certain enquiries were made by the Assessing Officer while discussing about the deposits in Bank account for Rs. 21,81,564/- by the assessee firm, but Learned AO failed in verifying the capital account of partners and also the admissibility of expenses towards interest to partners, since no proper evidence pertaining to payment of interest to partners claimed at Rs. 5,07,115/- was found in the assessment records. A show-cause notice under Section 263 was issued upon the assessee dated 25.02.2021 to invoke the provision of Section 263 by virtue of powers vested with the Learned PCIT under the Provisions of said section. In continuation, again a show-cause notice was issued to the assessee through ITBA on 21.12.2020, however no comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment order, page 2. last para. Submitted at PN 31 of PB, para no. 5. 4. Bank statement filed during original assessment, copy at PN 9 to 30 of PB. It depicts payments to pharma dealers on various dates. For example, bank statement on PN 9 of PB shows payment to medical concerns only. Genuineness of business activity established. 5. Copy of partnership deed filed before the AO, placed at PN 32 to 36 PB. Relevant business clause no. 4 at PN 33 of PB which also shows medicine business. Deed filed before AO, as mentioned on page no. 2, last but one para of assessment order. 6. Business of medicine trading also substantiated by computation of income. In computation, such income disclosed as business income, PN 8 of PB. Figur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ract receipts. - -Admissibility of partners' interest was never the issue and so AO was not required to enquire into this aspect. 7. Learned DR on the other hand vehemently supported the order of PCIT. 7. We have heard the rival contention, perused the material available on record and case laws relied upon. On perusal of the order of Learned PCIT under Section 263 in para 3, it is mentioned that a show-cause notice was issued to the assessee through ITBA on 21.12.2020 but no compliance was made by the assessee. This fact was not disputed by the assessee. Therefore, it is evident that the notice issued under Section 263 by the Learned PCIT and thereafter, a show-cause notice issued dated 21.12.2020 were not responded by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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