Case Law Details
Brief of the case
In the case of M/s A.V. Industries vs ACIT, Mumbai Tribunal held that when the assessee shows from the record that the necessary enquiries were made by the AO and the AO had applied his mind and the view adopted by him was one of the possible views, then it cannot be said that the order of the AO is erroneous. Once the Ld. CIT had proceeded to make an enquiry regarding the genuineness of the claim of the assessee, he was supposed to make a prima-facie opinion which may not be a concluding opinion to hold that the order of the AO in his view was erroneous so far as it was prejudicial to the interest of Revenue.
Fact of the case
In the present case, the assessment order passed by the A.O. u/s 143(3) relevant to A.Y. 2005-06 was annulled by the CIT exercising his revisional jurisdiction u/s 263. The Ld. CIT issued show cause notice and in compliance to the said notice, assessee filed point wise written submissions and explanations. The Ld. CIT after considering the submissions concluded that the claim of the assessee has not been allowed after proper verification. He, therefore, treated the assessment made by the AO as erroneous in so far as it was prejudicial to the interest of Revenue and A.O. was directed for making denovo assessment. Being aggrieved by the order of the Ld. CIT, the assessee filed the appeal before tribunal.
Contention of Revenue
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Toothless assessee. Whats in postponing the GAAR, year by year they are making impromptu GAAR in terms of appellate/revision provisions.