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TMI Blog2024 (3) TMI 421X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the assessee was assessed at Rs. 5,05,50,540/-. Thereafter, the ld. CIT-4 exercised his revision jurisdiction u/s 263 of the Act and passed revision order dated 13.06.2016 observing that the assessment order dated 19.12.2014 was erroneous and prejudicial to the interest of Revenue for want of proper enquiries on the part of the Assessing Officer while framing the assessment on various issues viz. share application money including the identity and creditworthiness of the share subscribers, charging of interest u/s 201(1A), rental income from the vehicles and depreciation thereupon. 4. Pursuant to the aforesaid order of the ld. CIT-4, Kolkata, an assessment was carried out u/s 143(3) r.w.s. 263 of the Act by DCIT, Circle-10(1), Kolkata. However, in the said assessment, the Assessing Officer after enquiries assessed the income of the assessee at Rs. 71,41,040/- vide assessment order dated 17.01.2017. 5. Thereafter, a proposal was made by DCIT, Circle-10, Kolkata vide letter dated 08.02.2019, whereby, it was pointed that in this case, in the earlier assessment order, certain additions were made in respect of share premium, disallowance of depreciation, brokerage and commission, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Subject : Seeking further directions in the case M/s Chandrani Compliments & Export (P) Ltd for the AY: 2012-13 - reg. Kindly refer to the above. I would like to draw your kind attention to the fact that return declaring total income of Rs. 67,95,026/- for the AY 2012-13 was filed by the assessee on 01.10.2012 and subsequently 143(3) Assessment was completed on 19.12.2014 by making the following additions: 1. Bogus credit in the garb of share capital of Rs. 3,65,87,800/- added u/s 68. 2. Disallowance of brokerage & commission of Rs. 51,85,93/- for failing to substantiate such debit for the purpose of business. 3. Disallowance of Excess Depreciation of Rs. 16,61,489/- on the Cars not running on hire. 4. Addition on account of delayed payment of PF & ESI before the due date of filing the return to the extent of Rs. 2,00,122/-. Subsequently the Ld. Pr. CIT-4 passed an order u/s 263 on 13.06.2016, wherein the original order passed u/s 143(3) was set aside de novo to facilitate the AO to carry out proper examination on each and every issue without waiting for the time barring date and to initiate the assessment proceedings immediately. On receipt of order u/s 263, a d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ld. Assessing Officer after getting approval from the ld. PCIT-4, Kolkata vide letter dated 15.12.2016 passed the impugned assessment order. The contents of the letter dated 15.12.2016 conveying the directions of the ld. PCIT-4, Kolkata, for the sake of ready reference, are reproduced as under: GOVERNMENT OF INDIA OFFICE OF THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-10(1) : KOLKATA. 6th FLOOR, 'AAYAKAR BHAVAN', P-7, CHOWRINGHEE SQUARE, KOLKATA- 700 069. Ph:033-22136434, Fax:033-22136450 F. No-PCIT-4/Kol/263/Chandrani/8108 Date: 15-12-2016. To, DCIT, Circle-10(1), Kolkata. Aayakar Bhawan, Kolkata. Sir, Sub:- Seeking further direction s in the case of M/s Chandrani Compliments & Export (P) Ltd for A.Y 2012-13-matter reg- Ref:- Letter in F.No-DCIT, Cir-10(1)/Kol*dir-263/2016/4089 dated 08.12.2016 Kindly refer to the discussion you had with Ld. PCIT-4, Kolkata on the above captioned subject. With reference to which, I have been directed to communicate the remarks of the PCIT, which is as u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were called upon by the Assessing Officer. There was neither any statutory power nor otherwise any other law requiring the Assessing Officer to only enhance or assess the same income which was earlier assessed. Such a proposition would be against the spirit of the law. When an assessment has been set aside or de novo assessment, all the issues in the assessment are open before the Assessing Officer, assessee as well also gets the right to plead, explain and furnish evidence on each of the issues. The outcome of the fresh assessment order is neither dependent nor can be based on the earlier assessment order which has been held to be erroneous and prejudicial to the interest of the revenue. If in the outcome of the fresh assessment order, the resultant assessed income is less than the earlier assessed income, the said order, by any fiction of law, cannot be termed as erroneous. 7.4 In the case in hand, the Assessing Officer, noting that in the fresh assessment proceedings, the assessed income of the assessee would be less than the earlier assessment income, sought necessary directions from the ld. PCIT-4, Kolkata in this respect and the ld. PCIT-4, Kolkata after considering this as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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