ASIF ABDUL SATTAR KHOKAR,MUMBAI vs. CIT 24, MUMBAI
In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.
What did the Tribunal hold?
The Tribunal affirmed the CIT's decision to set aside the assessment order. The assessee failed to provide any cogent material to counter the CIT's findings or point out infirmities in the revisionary exercise.
What were the facts?
The assessee's income was assessed at Rs. 27,73,010/- after scrutiny, significantly higher than the declared Rs. 6,12,810/-. The CIT invoked revisionary powers under Section 263, citing lack of examination of loan transaction genuineness and business utilization.
What were the issues?
Whether the CIT correctly exercised revisionary jurisdiction under Section 263 due to the AO's failure to examine the genuineness and business purpose of loan transactions.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, MUMBAI BENCH “A”, MUMBAI
Before: SHRI G.S. PANNU & SHRI RAM LAL NEGI
O R D E R PER G.S. PANNU, AM :
The present appeal has been preferred by the assessee against the order dated 14.03.2017 of the Commissioner of Income Tax [hereinafter referred to as the CIT], whereby the assessment order passed by the Assessing Officer (hereinafter referred to as the AO) u/s. 143(3) of the Act
Shri Asif Abdul Sattar Khokar dated 07/03/2015 for the A.Y.2012-13 has been held to be erroneous in so far as it is prejudicial to the interest of Revenue u/s.263 of the I T Act.
It was noted that none appeared and nor any application for adjournment was moved on behalf of the assessee, although on the earlier date of hearing, today’s date of hearing was duly noted by the representative of the assessee.
In terms of Rule 25 of the Appellate Tribunal Rules, 1963, the appeal of the assessee is being disposed off exparte qua the appellant and after hearing learned DR on merits.
In terms of material on record, it is noticeable that the assessee is engaged in proprietary business of sales and service in air conditioners under the name and style of M/s.Global Aircon. For the assessment year under consideration, assessee filed return of income declaring total income of Rs.6,12,810/- which was subject to scrutiny assessment u/s.143(3) of the Act dated 07/03/2015 whereby the total income has been assessed at Rs.27,73,010/-. Subsequently, the Commissioner has invoked his revisionary jurisdiction u/s. 263 of the Act and show-caused the assessee to explain as to why the assessment order dated 07/03/2015 (supra) be not treated as erroneous and prejudicial to the interest of Revenue in as much as it has been passed without looking at the genuineness of the loan transactions
Shri Asif Abdul Sattar Khokar undertaken by the assessee and also the fact that the loan funds have not been used for the purpose of business.
In response, the assessee furnished the explanation which has been reproduced by the Commissioner in para 2 of his order. Not been satisfied with his explanation, the Commissioner set aside the Assessment Order and directed the Assessing Officer to re-assess the income of the assessee after affording reasonable opportunity of hearing to the assessee and following due procedure of law. Against such decision of the Commissioner, assessee is in appeal before us.
Notably, before us assessee has not put-in any explanation as to how the Commissioner was wrong in exercising his revisionary jurisdiction u/s.263 of the Act. Even in the Grounds of appeal filed alongwith Memo of appeal before us, no specific infirmity has been pointed out except making generalised explanations. The learned CIT DR has also emphasised that neither the genuineness of the loan transaction and nor its utilisation has been examined as to whether it is for the purpose of business.
Considering the totality of facts and circumstances of the case and in the absence of any cogent material to the contrary, we hereby affirm the decision of the Commissioner and thus, assessee fails in its appeal.
Shri Asif Abdul Sattar Khokar
In the result, appeal of the assessee is dismissed.
The above decision was pronounced in the open court at the conclusion of hearing today in the presence of learned DR. Order pronounced in the open court on 30th October, 2017 Sd/- Sd/- (RAM LAL NEGI) (G.S. PANNU) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Date : 30th October, 2017 Karuna Copy to : 1) The Appellant 2) The Respondent 3) The CIT(A) concerned 4) The CIT concerned 5) The D.R, “A” Bench, Mumbai 6) Guard file By Order
More judgments on Section 263
- Gillette India Limited, Mumbai vs Principal Commissioner of Income Tax, JaipurITA 1316/JPR/2026[2018-19]Status: Disposed16 Oct 2026AY 2018-19
- Neo Structo Construction P. Ltd., Ahmedabad vs The Pr. CIT- 3, AhmedabadITA 1216/AHD/2026[2015-2016]Status: Disposed16 Oct 2026AY 2015-2016
- Vimal Harilal Baldania, Gandhidham vs The ITO Ward 2, GandhidhamITA 770/RJT/2025[2017-18]Status: Disposed15 Oct 2026AY 2017-18
- J.D. Marketing, Kolkata vs ITO, Ward 37(1), KolkataITA 1493/KOL/2026[2015-2016]Status: Disposed15 Oct 2026AY 2015-2016
- J.D. Marketing, Kolkata vs ITO, Ward 37(1), KolkataITA 1492/KOL/2026[2013-2014]Status: Disposed15 Oct 2026AY 2013-2014
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