SHRI TELI MUNNA IBRAHIM,JALGAON vs. CIT-II, NASHIK

आदेश आदेश

PER D. KARUNAKARA RAO, AM :

This appeal is filed by the assessee against the revision order of CIT-II, Nashik u/s.263 of the Act, dated 21-03-2013 for the Assessment Year 2008-09. 2. Assessee raised the following grounds of appeal : “Proceedings u/s.263 and order u/s.263 are without jurisdiction and Bad in Law. Same may please be cancelled. Honourable Commissioner has erred in passing order u/s.263 and setting aside order u/s.143(3) denovo. Appellant prays to cancel the order u/s.263. Commissioner has erred in suspecting the transaction of purchases and sale of plot, though are registered documents CIT’s direction to not allowing loss on sale activity may please be cancelled accepting returned loss. CIT has erred in observing & directing Assessing Officer to disallow payment of Cash for purchase of land. Commissioner has erred in observing and directing Assessing Officer to assessee the transaction of Sale/Surrender of Reliance Petrol Pump as slum sale as against profit on sale offered as Short Term Gain.

various business activities in the name of various concerns viz. (1)

Sagar Constructions deals in trading of the properties, (2) Reliance

Petrol Pump dealing in petroleum products and (3) Asha Kirana

Merchant dealing in sale of scrap and sand etc. Assessee filed the return of income u/s.139(1) of the Act on 04-11-2008 declaring total

income of Rs.2,19,780/-. Notices u/s.143(1) and 143(2) were also issued. During the scrutiny assessment proceedings u/s.143(3) of the Act, AO issued questionnaires dated 11-10-2010 and 07-12-2010

calling for details on various issues. These questionnaires and the assessee’s replies are placed in pages 12 to 22 of the paper book.

Eventually, on examination of the claims of loss in transaction of sale of scrap, purchase/sale transactions of land, sale of petrol pump to the Reliance Industries Limited, etc., the AO completed the assessment

u/s.143(3) of the Act disallowing a sum of Rs.30,53,378/-, the loss

claimed by the assessee from sale of scrap. AO left an office note in this regard too. Thus, the assessed income is determined at Rs.32,73,158/-

vide order dated 24-12-2010. 4. Subsequently, on 04-03-2013, the CIT in response to the audit

objection and also considering the proposal of the AO, a show cause

notice was issued u/s.263 of the Act raising certain issues.

Sagar Construction, the CIT examined the purchase and sale details of the lands at Sy.No.77 (77 plots of land) and Sy.No.81 (45 plots of land)

and mentioned that assessee got loss of Rs. 18,71,000/- out of lands at Sy.No.77 and loss of Rs.12,53,000/- out of lands at Sy.No.

loss works out to Rs.31,24,000/-. CIT examined this issue in Para No.3

to 5 of his order. CIT recorded the fact that the AO considered the written submissions of the assessee on this issue and mentioned the same, in the office note, the reasons for the business loss in the sale of immovable properties. The fact of his examining the purchase and sale

details and the relevant agreement deeds were also mentioned.

However, the CIT held that the AO relied too much on the documents of the Sub-