Case Law Details
APM Industries Ltd. Vs DCIT (ITAT Jaipur)
ITAT Jaipur held that the assessment order passed by AO after considering the information filed during assessment proceedings cannot be said to be erroneous and prejudicial to the interest of the revenue. Every loss of revenue as a consequence of an order of the AO cannot be treated as prejudicial to the interests of the Revenue.
Facts- The assessee is a domestic company by name and style ‘APM Industries Ltd.’ and is engaged in manufacture of Man-made Fibres Spun Yarn. The case was selected for scrutiny through CASS cycle under complete category and notice u/s. 143(2) was issued.
Thereafter, PCIT noted various issues have not been verified by AO during the assessment proceedings. Therefore, a show cause notice proposing the revision u/s. 263 of the Act was issued on 16.02.2023. In response the assessee filed written submission online. PCIT noted that the reply of the assessee perused carefully but the same was not found tenable and thus on the all the issue as pointed out in the show cause notice considering the facts on records it was held that the assessment order is liable for revision u/s. 263 of the Act.
Conclusion- The assessment order passed by the AO is after consideration of the information filed during assessment proceedings which is as mentioned by the AO himself in the assessment order and therefore the order cannot not be said to be erroneous and prejudicial to the interest of the revenue even by virtue of explanation 2(a) and 2(b) of Section 263 of the Act and in such a situation, we find that the order of the Id PCIT is bad in law and the Bench does not concur with the findings of the Id. PCIT.
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