9911796707
TMI Blog2024 (3) TMI 1010X X X X Extracts X X X X X X X X Extracts X X X X ..... e for the assessment year 2015-16 u/s. 143(3) of the Income Tax Act, 1961 (hereinafter the 'Act') vide order dated 31.12.2017. 2. The only issue in this appeal of assessee is as regards to the revision order passed by the PCIT, Coimbatore u/s. 263 of the Act revising the assessment framed by the AO u/s. 143(3) of the Act for the reason that the AO has not examined increase in share capital. As against the order of PCIT, the assessee has raised following two grounds:- 2. Learned CIT is magnanimous enough to mention the fact that we objected for 263 proposal but he never discussed it or decided it as it will make the 263 proposal itself invalid in law. The fact that there is no scope for 263 invoking in this case as, neither the order of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as not made verification on the issue of increase in capital as according to him, as per the details available on the return, there was an increase in proprietors capital from Rs. 1,56,18,810/- in the preceding assessment year to Rs. 3,84,05,937/- in the current assessment year 2015-16. In the course of assessment proceedings in response to notice u/s. 142(1) of the Act dated 26.09.2017 issued calling for details required to examine the CASS issue, initially, the assessee had authorized a Chartered Accountant to represent his case, who had provided partial details called for vide his letter dated 16.10.2017 and later on when the requisite details were not forthcoming, the AO had issued a letter dated 13.11.2017 wherein it was informed to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wherein the assessee admitted a figure of Rs. 1,20,54,348/- as on 31.03.2015 has not been put for thorough examination. Thus, the PCIT alleged that as per the income statement, the returned income is Rs. 6,35,046/- whereas as per the revised computation filed by the assessee, the net profit in the P&L account is at Rs. 1,20,54,348/-. He also noted that in the original return of income filed, the capital account on sale of stocks of gold jewellery was reported at Rs. 39,16,400/- whereas in the revised computation, it was declared at 'nil'. Therefore, the PCIT noted that the assessment order is passed by the AO without verification of facts and hence, the assessment order is held to be erroneous. For this, the PCIT recorded his finding in par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ams upon death of his mother on 27.01.2014 and was recorded in capital account for the year ending 31.03.2014. It was contended by the ld.counsel for the assessee that during assessment year under consideration, the assessee had sold jewellery to the extent of 5000 grams to ARK Jewllers and the gain from such transfer was reported under the head 'capital gains'. The ld.counsel argued that these documents were available before AO during the course of scrutiny assessment and assessee had even reconciled the capital account balance between the original balance sheet and the rectified balance sheet. The AO during the course of assessment proceedings has completely scrutinized the original balance sheet as well as revised balance sheet or correc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessment record. But the AO has never acted upon on the original balance sheet but he accepted the correct balance sheet filed during the course of assessment proceedings. We find that the assessee vide reply dated 14.12.2017 has admitted the new balance sheet and the differentials between the original and rectified balance sheet which are part of assessee's paper-book at pages 90-92. We noted that on merits also, the assessee has explained the differentials and hence, the assessment order is neither erroneous nor prejudicial to the interest of Revenue because of non-verification of assessment. The AO has verified the complete details as it is evident from the assessee's paper-book that the AO asked for the entire details and the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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