Case Law Details
Kyal Agencies Private Limited Vs PCIT (ITAT Cuttack)
Admittedly, in the present case, in respect of the issue of sundry creditors, the powers invoked by the ld. Pr.CIT u/s.263 of the Act is in effect only for the purpose of rectification of the arithmetical mistake being the totalling difference between the total as arrived at by the AO in the original assessment order and the total as determined by the ld. Pr.CIT in his revisionary order. The total as arrived at by the Pr.CIT in his order is also erroneous insofar as it is short by Rs.27000/-. In any case, in regard to the issue of genuineness, creditworthiness and identity of the sundry creditors, the same has already been filed before the ld. CIT(A) and on the basis of the remand proceedings, the ld. CIT(A) has deleted the substantial portion of the addition resulting into sustenance of addition of Rs.11,375/- only. This being so, we are of the view that the order of the ld. Pr.CIT passed u/s.263 of the Act on the issue of sundry creditors in respect of correction of the arithmetical mistake no more survives, insofar as the primary addition has itself been deleted.
Coming to the issue of non-reconciliation of the discount on the sales, a perusal of the order of the Pr.CIT clearly shows that he has not identified which is the sales relating to which the discount needs to be reconciled. Further, admittedly, the details of the purchase and sales and discount thereon have already been called for by the AO and the details were also submitted by the assessee and they were examined and no addition on that account has been made by the AO. But after having examined the details the same have been accepted. Per Contra, the ld. Pr.CIT has come up with a proposal of revision wherein he talks of the figure of Rs.80,000/-. However, he does not identify the sales or the party with whom the transaction has been done which calls for the reconciliation. This being so, we are of the view that the order of the Pr.CIT-1, Bhubaneswar is unsustainable on the facts of the case and consequently the same stands quashed.
FULL TEXT OF THE ORDER OF ITAT CUTTACK
This is an appeal filed by the assessee against the order of the ld. Pr.CIT-1, Bhubaneswar, dated 15.03.2021 in Revision No. PCIT, Bhubaneswar-1/Revision-263/100000168355/2021 for the assessment year 2017-2018 in respect of the order passed u/s.263 of the Act.
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