TMI Blog2023 (11) TMI 753X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Ld. PCIT s order is that cent percent general expenses claimed by the assessee be disallowed as against 20% thereof as per the decision of the Ld. AO for the reason that complete details were not filed and that veracity thereof could not be verified. By no stretch of imagination, the decision of the Ld. AO to disallow 20% out of the claim of the assessee can be termed as erroneous . This is because the Ld. AO has exercised the quasi-judicial power vested in him in accordance with law and arrived at a conclusion. Such a conclusion cannot be termed to be erroneous because the Ld. PCIT does not feel satisfied with the conclusion as held by the Hon ble Bombay High Court in CIT vs. Gabriel India Ltd. [ 1993 (4) TMI 55 - BOMBAY HIGH COU ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... law and on facts. 2. On the facts and circumstances of the case, the order passed by the learned Pr. CIT cancelling the assessment order passed by the A.O. is untenable in the absence of order of the A.O. being erroneous as well as prejudicial to the interest of the Revenue. 3. On the facts and circumstances of the case, the order passed by the learned Pr. CIT cancelling the assessment order passed by the A.O. is illegal and without jurisdiction as the issues on which the revision was sought are the subject matter of appeal before the learned CIT(Appeals) 4. On the facts and circumstances of the case, the learned Pr. CIT has erred both on facts and in law in ignoring the fact that all the issues raised by him in notice under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee company is engaged in the business of petrol pump. It filed its return for AY 2017-18 on 30.10.2017 declaring income of Rs. 79,99,000/-. The case was selected for complete scrutiny through CASS. Statutory notice(s) along with questionnaire were issued / served upon the assessee. In response to notices, the assessee uploaded the submissions through online which have duly been examined by the Ld. Assessing Officer ( AO ) who completed the assessment on total income of Rs. 1,09,77,800/- on 28.12.2019 under section 143(3) of the Act including therein addition of Rs. 25,21,073/- on account of undeclared profit; unexplained cash credit of Rs. 2,25,000/- under section 68; interest expense of Rs. 11,446/- under section 40(a)(ia) and d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aim. As regards addition of Rs. 25,21,073/- being the difference between the sales and purchase as per information received from HPCL and as per ledger account of the assessee, it was explained that difference was mainly on account of VAT charged by HPCL in their bills whereas VAT was booked by the assessee under separate head as per accounting policy regularly followed by the assessee. It was submitted before the Ld. PCIT that both the issues were raised during assessment proceedings and the necessary clarifications / documentary evidences were submitted before the Ld. AO which he did not consider properly. 5. The Ld. PCIT considered the submission/reply of the assessee and in exercise of powers vested in him under section 263 of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment is completed after issue of notice under section 143(2) and 142(1) of the Act along with questionnaire and after duly examining the submissions of the assessee. If that be so, it is rather naive to assume that it is a case in which assessment order is passed without making enquiries or verification which should have been made. The import of the Ld. PCIT s order is that cent percent general expenses of Rs. 11,06,406/- claimed by the assessee be disallowed as against 20% thereof i.e. Rs. 2,21,281/- as per the decision of the Ld. AO for the reason that complete details were not filed and that veracity thereof could not be verified. By no stretch of imagination, the decision of the Ld. AO to disallow 20% out of the claim of the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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