TCG SOFTWARE PARKS PVT. LTD,KOLKATA vs. PCIT-1, KOLKATA, KOLKATA

The only issue raised in the appeal whether the CIT u/s. 263 of the Act is justified in directing the AO to make a fresh assessment by setting aside the assessment order u/s. 143(3) of the Act dt. 21-03- 2015 in the facts and circumstances of the case.

After hearing both the parties, we noticed that the Pr. CIT by invoking his jurisdiction u/s. 263 of the Act set aside the assessment order dt. 21-03-2015 passed u/s. 143(3) of the Act by alleging that the assessee had short credited rent of Rs.35,07,547/- to the P & L account received from Global E- Business Operations P.Ltd. The Pr. CIT was of the opinion that the AO failed to carry out necessary verification in respect of said undisclosed rent received. The ld.AR submits that the assessee claimed TDS for 13 months on rental income in the F.Y relevant to A.Y 2012-13, whereas income has been considered for 12 months in the return of income and referred to page-5 of details as filed before us by the assessee regarding the TDS in Form 26AS. In view of above, the Pr. CIT was not justified in setting aside the assessment order dt. 21-03-15 of the A.O. On the other hand, the ld. DR did not controvert the above submissions the ld.AR. We find that the Pr. CIT has erred in setting aside the same and in directing the AO to make fresh assessment u/s. 263 of the Act without considering the facts of the case. Therefore, taking into consideration the facts and circumstances of the case, the submissions of the ld. AR and in the interest of natural justice, we deem it fit and proper to remand the issue(s) involved in the appeal to the file of AO for his verification in terms of reply dt. 13-02-2017 in response to notice issued u/s. 263 of the Act by the Pr. CIT. Grounds raised by the assessee in this regard are allowed for statistical purpose.

In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on 18-05-2018