CIT held assessment order as erroneous and prejudicial to the interest of revenue on the ground of AO not having made adequate enquiries as regards labour charges and capital introduced.Held: AO issued notice under section 143(1) and in response to said notice, assessee had furnished details of labour charges incurred for the purpose of business and sufficient evidences regarding capital introduced by partner and assessment was completed accordingly, therefore, it was not a case of inadequate scrutiny and order passed by AO was neither erroneous nor prejudicial to the interest of revenue.
IN THE ITAT, KOLKATA BENCH
A.T. VARKEY, J.M. & A.L. SAINI, A.M.
Zenith Fish Corporation v. Pr. CIT
ITA No. 791/Kol /2019
18 December, 2019
Appellant by : K.M. Roy, FCA
Revenue by : P.K. Srihari, CIT (DR)
A.L. Saini, A.M.
The captioned appeal filed by the assessee, pertaining to assessment year 2014-15, is directed against the order passed by learned Pr. Commissioner-9, Kolkata, under section 263 of the Act, dt. 27-3-2019.
2. By way of this appeal, the assessee has challenged the correctness of the order passed by the learned Pr. Commissioner (in short, PCIT), under section 263 of the Act, dt. 27-3-2019. The grounds of appeal raised by the assessee are as follows:
1. That the order is unsustainable in the eyes of law as assessing officer has conducted necessary enquiry and has adopted one of the possible course of action.
3. The facts of the case which can be stated quite shortly are as follows:
The assessee-firm filed its return of income for the assessment year 2014-15 on 6-12-2014 declaring a total income of Rs. 11,98,290. Thereafter, the case was selected for scrutiny under CASS. The assessment order under section 143(3) of the Income Tax Act, 1961 was passed by assessing officer on 5-12-2016 at an assessed income of Rs,73,95,440.