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| The Tax Publishers2020 TaxPub(DT) 1138 (Mum-Trib) INCOME TAX ACT, 1961
Section 263
As evident, during scrutiny assessment assessee furnish details of provisions of IBNR and IBNER as reported in schedule-16 of pofit and loss acount in pursuance to quarries of AO. Further, in Auditor's report liability for claims IBNR and IBNER were duly certified by Auditors and copy of Auditor's report was also filed along with and relevant Sch. 16 of statement of accounts. Thus, once AO required the details, he could surely have considered report of auditor and passed assessment order and merely because there was no elaborate discussion in assessment order, same could not be termed as erroneous and prejudicial.
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Revision under section 263 - Erroneous and prejudicial order - Allegation of lack of examination by AO merely because of no discussion as regards impugned issue in assessment order -
Pr. CIT invoked jurisdiction under section 263 and directed AO to re-do assessment by examining provision claimed by assessee company engaged in business of General Insurance towards claims incurred but not reported (IBNR).Held: As evident, during scrutiny assessment assessee furnish details of provisions of IBNR and IBNER as reported in schedule-16 of pofit and loss account in pursuance to quarries of AO. Further, in Auditor's report liability for claims IBNR and IBNER were duly certified by Auditors and copy of Auditor's report was also filed along with and relevant Sch. 16 of statement of accounts. Thus, once AO required the details, he could surely have considered report of auditor and passed assessment order and merely because there was no elaborate discussion in assessment order, same could not be termed as erroneous and prejudicial.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2013-14 & 2014-15
IN THE ITAT, MUMBAI BENCH
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