TMI Blog2003 (6) TMI 173X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee-company appeared and filed details and produced books of accounts which were test-checked and verified. While framing the assessment, the AO made disallowance in respect of the expenses claimed by the assessee and the income was assessed at Rs. 1,26,700. 3. The learned CIT invoked his jurisdiction under s. 263 of the Act and by passing the impugned order it was held that the assessment was done without proper enquiry and investigation. Accordingly, he set aside the assessment framed under s. 143(3) to be done de novo after enquiry. Against that order, the assessee has moved the Tribunal. 4. The learned counsel appearing on behalf of the assessee submitted that all the details and particulars were furnished before the AO and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reliance on the decision reported in the case of Gee Vee Enterprises vs. Addl. CIT Ors. 1975 CTR (Del) 61 : (1975) 99 ITR 375 (Del). 6. We have heard both the sides and perused the material on record. It appears that before framing the assessment under s. 143(3), a notice under s. 142(1) was issued by the AO. Copy of the said notice dt. 13th July, 1999 is at p. 20 of the paper book and the contents thereof are quoted below: "Sub: Requisition under s. 142(1) of the IT Act, 1961, Asst. yr. 1997-98 With reference to above you are required to furnish in writing and verify in the prescribed manner information called for as per requisitions given below: (1) Name, present postal address, P.A. No. and details of shareholders/share applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tice under s. 143(2), dt. 13th July, 1999, was also issued. Another letter dt. 21st Sept., 1998, was issued by the AO to the assessee requiring it to let the AO know the nature of activities being carried out by the assessee. Again, another notice under s. 143(2), dt. 16th Sept., 1998, was issued to the assessee by the AO, which is at p. 22 of the paper book. The assessee filed a detailed reply in response to the notice under s. 142(1) stating each and every particulars which were sought by the AO. Copy of the reply is at pp. 23 and 24 of the paper book. As stated above, the original return was processed under s. 143(1)(a). Thereafter the case was selected for scrutiny and the assessment was framed under s. 143(3) of the Act. The relevant p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on before passing the assessment order. No material was brought on record by the learned CIT that what the AO stated in his order is not correct, which may cause prejudice to the revenue and the order can be said to be erroneous. In the case of Malabar Industrial Co. Ltd. it has been held by the Hon'ble Supreme Court that every loss of revenue as a consequence of an order of the AO cannot be treated as prejudicial to the interests of the Revenue. When an ITO adopted one of the courses permissible in law and it has resulted in loss of revenue; or where two views are possible and the ITO has taken one view with which the CIT does not agree, it cannot be treated as an erroneous order prejudicial to the interests of the Revenue unless the view ..... X X X X Extracts X X X X X X X X Extracts X X X X
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