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Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK
per the directions of the Pr. CIT in the revision order dated 7.3.2017 and
called for information of creditors and having satisfied with the
submissions of the ld. AR with evidence has restricted the addition of
sundry creditors to Rs.2,41,505/- as no explanation was submitted by the
assessee in the respect of sundry creditors.
We find that the Assessing Officer has followed the directions of Pr.
CIT on the disputed issue of verification of sundry creditors and the ld. AR
6 ITA No.343/17 of the assessee has participated in the assessment proceedings and filed
the details and also information was called for u/s.133(6) of the Act in
respect of sundry creditors and finally the AO has passed the order
u/s.143(3) r.w.s 263 of the Act. Therefore, we are of the opinion that the
assessee has participated in the assessment proceedings and as
envisaged by the ld. AR the assessee has filed an appeal against the
order of AO passed u/s.143(3)/263 of the Act.
We find that the Hon’ble Delhi High Court in the case of Kailash
Prasad Jain Vs. CIT, [2011] 202 Taxman 244 (Calcutta) has observed in
para 18 of the order which reads as under :-
“18. Dr. Pal's client approached the Tribunal challenging the order passed under section 263 and even did not pray for any interim relief for stay of operation of the said order and allowed the order of assessment to be passed. Ultimately an appeal was also preferred. The legal proposition explained by Dr. Pal would be appropriate when it would be found that the authority concerned lack inherent jurisdiction in the subject-matter. In this case it cannot be held CIT had no jurisdiction. The question is whether assumption of jurisdiction is done by the said authority on being satisfied with the twin conditions mentioned therein. This question could and can be examined in many ways. When assessee did not take any step for stay of the order of the Assessing Officer pursuant to the impugned order of the CIT under section 263 and after having participated in the hearing of the assessment proceedings and consequently preferring appeal, we think it would not be proper for this Court at this stage to decide issue raised before us.”
Similarly, the Hon’ble Supreme Court in the case of DENIEL
MERCHANTS P. LTD. & ANR. Vs. ITO, SLP(C) No(s). 23976/2017,
dated 29.11.2017, wherein the Hon’ble Apex Court has held as under :-
“Delay condoned. In all these cases, we find that the Commissioner of Income Tax had passed an order under Section 263 of the Income Tax Act, 1961 with the observations that the Assessing Officer did not make any proper inquiry while making the assessment and accepting the explanation of the assessee(s) insofar as receipt of share application money is concerned. On that basis the Commissioner of
7 ITA No.343/17 Income Tax had, after setting aside the order of the Assessing Officer, simply directed the Assessing Officer to carry thorough and detailed inquiry. It is this order which is upheld by the High Court. We see no reason to interfere with the order of the High Court. The Special Leave Petitions are dismissed. Pending application(s), if any, stands disposed of accordingly.” 13. We considering the facts and circumstances of the case and judicial decision, found that the Pr.CIT has dealt on the disputed issue and considered the judicial decision and passed a reasoned order. Accordingly, we are not inclined to interfere with the order of the Pr.CIT and the same is upheld and the grounds of appeal raised by the assessee are dismissed. 14. In the result, appeal filed by the assessee is dismissed. Order pronounced in the open court on 06/09/2018. Sd/- Sd/- (N. S. SAINI) (PAVAN KUMAR GADALE) लेखा सद�य / ACCOUNTANT MEMBER �या�यक सद�य / JUDICIAL MEMBER कटक Cuttack; �दनांक Dated 06/09/2018 �.कु.�म/PKM, Senior Private Secretary आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : अपीलाथ� / The Appellant- 1. Anand Prasad Jaiswal, Prop-Anand Steel & Pipes, At-Piligrim Road, College Square, Cuttack-753003 ��यथ� / The Respondent- 2. Principal Commissioner of Income Tax, Cuttack-753008 आयकर आयु�त(अपील) / The CIT(A), 3. आयकर आयु�त / CIT 4. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, कटक / DR, ITAT, Cuttack 5. गाड� फाईल / Guard file. 6. स�या�पत ��त //True Copy// आदेशानुसार/ BY ORDER,
(Senior Private Secretary) आयकर अपील�य अ�धकरण, कटक / ITAT, Cuttack