INCOME TAX ACT, 1961

Section 263

Revision under section 263 - Erroneous and prejudicial order - Lack of enquiry on AO's part -

CIT held assessment order as erroneous insofar prejudicial to the interest of revenue on account of non-verification of the difference in the amount of gross receipts shown by the assessee in books of account vis-a-vis gross receipts shown in Form no. 26AS.Held: From the records, it was transpired that queries were raised by AO during assessment proceedings about mismatch of TDS credit claimed by assessee vis-a-vis the TDS credit reported in Form No. 26AS. Similarly, query was raised regarding contracts which were completed in the year under consideration. Accordingly, there was no enquiries raised by AO about mismatch in amount of gross receipts shown by assessee vis-a-vis reported in the Form No. 26AS on which TDS was deducted. Accordingly, there was no verification carried out by AO during assessment proceedings with respect to amount of gross receipt shown by assessee vis-a-vis the gross receipt reported in Form No. 26AS. Accordingly, in the absence of enquiry on AO's part, assessment order was rightly held as erroneous insofar prejudicial to interest of revenue.

Relied:Malabar Industries Co. Ltd. v. CIT (2000) 243 ITR 83 (SC) : 2000 TaxPub(DT) 1227 (SC).

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2011-12

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