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| The Tax Publishers2024 TaxPub(DT) 823 (Rkt-Trib) INCOME TAX ACT, 1961
Section 263
Reopening under section 147, was done for the limited purpose i.e. mismatch in the freight advance accounts and AO during the income escaping proceedings did not notice any other income chargeable to tax which had escaped assessment. As such, AO was satisfied with the income assessed under section 143(3) and, therefore, he did not extend the scope of re-assessment proceedings beyond the reasons recorded. Thus, Pr. CIT could not expand the scope of assessment under section 147 by exercising jurisdiction under section 263.
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Revision under section 263 - Erroneous and prejudicial order - Pr. CIT bought to expand scope of assessment under section 147 by exercising jurisdiction under section 263 -
Pr. CIT treated order passed by AO under section 147 as erroneous and prejudicial to the interest of revenue on the ground of AO not having examined the genuineness of sundry creditors shown outstanding as on 31-3-2012 which appeared to be doubtful. Assessee contended that re-opening was made under section 147, on the reason of mismatch in the ledger of freight advances vis-a-vis the balance shown in the financial statement, and no addition was made by AO after due necessary verification. Held: Reopening under section 147, was done for the limited purpose, i.e. mismatch in the freight advance accounts and AO during the income escaping proceedings did not notice any other income chargeable to tax which had escaped assessment. As such, AO was satisfied with the income assessed under section 143(3) and, therefore, he did not extend the scope of re-assessment proceedings beyond the reasons recorded. Thus, Pr. CIT could not expand the scope of assessment under section 147 by exercising jurisdiction under section 263.
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2012-13
IN THE ITAT RAJKOT
WASEEM AHMED, A.M. & TR SENTHIL KUMAR, J.M.
Rajmoti Road Movers v. Pr. CIT
ITA No. 157/RJT/2022
7 February, 2024
Assessee by: D.M Rindani, A.R
Revenue by: Shramdeep Sinha, CIT. DR
Waseem Ahmed, A.M.
The captioned appeal has been filed at the instance of the assessee against the order of the Learned Principal Commissioner of Income Tax-1, Rajkot arising in the matter of assessment order passed under Section 263 of the Income Tax Act, 1961 (here-in-after referred to as 'the Act') relevant to the Assessment Year 2012-13.
2. The only grievance raised by the assessee is that the Learned PCIT under section 263 of the Act has held the assessment order passed by the Assessing Officer as erroneous in so far prejudicial to the interest of revenue under section 263 of the Act.
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