Income Tax Appellate Tribunal - Chandigarh
Smt. Sunita Gupta, Mohali vs Pr.Cit-1, Chandigarh on 9 March, 2022
आयकर अपील य अ धकरण,च डीगढ़ यायपीठ "बी", च डीगढ़
IN THE INCOME TAX APPELLATE TRIBUNAL,
CHANDIGARH BENCH 'B', CHANDIGARH
BEFORE SMT.DIVA SINGH, JUDICIAL MEMBER
AND SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER
ITA No. 106/Chd/2021
(Assessment Year: 2016-17
Smt.Sunita Gupta, बनाम Principal Commissioner of
Mohali. Income Tax,
Chandigarh-1.
थायी लेखा सं./PAN NO: AAYPG0425B
ITA No. 107/Chd/2021
(Assessment Year: 2016-17
Shri Vishal Gupta (HUF), बनाम Principal Commissioner of
Mohali. Income Tax,
Chandigarh-1.
थायी लेखा सं./PAN NO: AAIHV1188A
ITA No. 108/Chd/2021
(Assessment Year: 2016-17
Shri Rajat Gupta (HUF), बनाम Principal Commissioner of
Mohali. Income Tax,
Chandigarh-1.
थायी लेखा सं./PAN NO: AAQHR0878D
ITA No. 109/Chd/2021
(Assessment Year: 2016-17
Shri Deepak (HUF), बनाम Principal Commissioner of
Mohali. Income Tax,
Chandigarh-1.
थायी लेखा सं./PAN NO: AAHHD8426N
2 ITA Nos.106 to 109/Chd/2021
A.Y.2016-17
नधा रती क ओर से/Assessee by : Shri Nikhil Goyal, CA &
Shri Ashok Goyal, CA
राज व क ओर से/ Revenue by : Shri Sarabjeet Singh, CIT DR
सन
ु वाई क तार ख/Date of Hearing: 05.01.2022
उदघोषणा क तार ख/Date of Pronouncement: 09.03.2022
(Hearing through Webex)
आदे श/ORDER
Per Vikram Singh Yadav, Accountant Member:
These are appeals filed by the aforesaid assessees against the respective orders of Learned Principal Commissioner of Income Tax, C h a nd i ga r h-1 [ i n s hor t th e ' Ld. P r. C I T' ] a l l da t e d 3 0 .0 3 .2 0 2 1 p a sse d u/s 2 6 3 o f t he Ac t p e r ta i ni n g to a sse ssme nt ye a r 2 0 1 6-1 7 .
2. S in ce the co mmon i ssu e s a re i nv ol ve d , all t he se a pp e a ls we re hea r d to ge the r a nd a r e be in g di sp os e d o ff b y thi s con so li d a te d or de r .
ITA N o.1 06 /Ch d/ 2 02 1
3. W i th the c ons e nt of b oth t he p a rt ie s, the c a se of th e a sse sse e , Smt . S un it a Gu p ta i n I TA N o. 1 06 /C h d /20 2 1 for a sse ssme nt ye a r 2 0 16 -1 7 w a s ta k e n a s a le a d ca se w he re in the c on te n ti ons a dv a nc e d b y bo th th e p a r ti e s w e re he a rd a nd ma te ri a l p ur su e d i n th e c on te xt of f ol lo wi n g gr ou nd s of a pp e a l ta ke n b y th e a sse ssee :
3 ITA Nos.106 to 109/Chd/2021
A.Y.2016-17 " 1 . W h e th er on th e f acts an d c irc u m sta n c e s of th e c a se an d in l a w, th e ld C IT h as exc eed ed le gisl ati ve ju r isd ic ti on u n d e r sec ti on 2 6 3 of th e Ac t thu s ord er p a sse d i s b ad in l a w.
2 . T h a t the ld C IT h a s erre d i n p as sin g o rde r un d er se c tio n 2 6 3 in t he ab sen ce of a n y erron eo u s po si ti on pre ju d ic i al to th e in tere st of Reven u e in th e ori gin al a sse ssmen t or de r p as sed b y the l d IT O u n de r sec tion 1 4 3( 3 ) of th e Ac t.
3 . T h a t th e l d C IT h as erred in c on cl u d ing pro cee din g s u n de r sec ti on 26 3 of th e A c t wi th ou t pro per peru sal of the a sse ssmen t r ec ord .
4. That th e ld C IT h as erre d in su b sti tu ti n g an al tern a ti v e v ie w as a g a in st th e f irm v ie w ad o p ted by th e l d A O a t th e ti me of origin al a sses sme n t un d er sec tio n 1 4 3( 3 ) of th e Ac t. "
4. B r i e f ly, the f a ct s of th e ca se a r e th a t d ur i ng th e ye a r un de r co ns ide r a tion , th e a sse ssee d e r i ve s i n come fro m s ha r e tr a di n g a n d o the r so ur ce s a nd has f il e d he r re tu r n of i nc ome on 15 . 0 9. 2 0 16 d e cl a r in g t ota l i nc ome of Rs. 5 , 0 8 ,0 0 0 /-. Th e r e a fte r, th e ca se of th e a s se s see w a s s e le c te d for l imi te d scr u tin y un d e r C AS S a nd not ices u /s 1 4 3 ( 2) a nd 14 2 ( 1) of 4 ITA Nos.106 to 109/Chd/2021 A.Y.2016-17 the A ct a l ong wi th q u e s tio nn a ire w e re i ss ue d. I n r e sp on se , the Ld . C ou ns e l f or the a ss e ssee fi le d sub mi ss ion s con ta i ni ng i nf or ma ti on /d oc u me n ta ti on a s ca l le d fo r b y th e Ass e ss i ng of f icer and a f ter e xa mi ni ng the sa me , the re tur ne d in come w a s a cc e p te d b y the A sse ss in g offi ce r .
5. Th e r e a f te r , the ass e ss me n t re co rds w e re c a lle d f or a nd e xa mi ne d by the Ld . P r .C I T a nd a s how c a us e d a te d 09 . 03 . 2 02 1 w a s is su e d t o the a sse sse e u/s 2 6 3 o f th e Ac t. I n the sh ow cau se n oti ce , it ha s b ee n sta te d b y th e Ld . Pr . C I T th a t on p e r us a l of the ass e ss me n t re cord s, it h a s be e n ob se r ve d tha t you ha v e sh ow n th e in co me on a c cou nt of F & O i n your re tur n of i n come a t Rs. 1 7 ,6 2 ,3 6 4 / - w he re as the ne t pr e miu m /pr of i t a s p e r th e d e ta i l s f urni s he d by M /s V ik so n S e c ur i ti e s Pv t. Ltd .( B r ok e r ) d ur i ng the cou rs e of a sse ssme nt p r oce e d in gs a mou nt s to R s. 15 , 0 5, 5 3 2/- a n d a s pe r de ta i l s fu r ni sh e d by N S EL, th e net p re mi um /p r ofi t come s to R s. 47 , 41 , 9 07 /-. Th e r e f ore , w h i le m a k i ng th e a sse ssme nt , t he d i ff e re n ti a l ne t p r e mi um /p r of it a s pe r the de ta i ls f ur ni s he d b y th e N SE L a m ou nti n g t o Rs . 2 9 , 7 9, 5 43 /- re ma in e d u nve r ifi e d and w h i ch ha s , the re fore , e s ca pe d a sse ssme nt i n your ca s e . I n v ie w of th e a b ove f a cts , th e or de r pa s se d u/s 14 3 ( 3) of th e A ct is e r r one ous a nd pr e ju di ci a l to the i n te re st of th e Re ve n ue a nd the a sse ss ee wa s a cc or d in gl y a s k e d to sh ow cau se a s t o w hy the or de r so 5 ITA Nos.106 to 109/Chd/2021 A.Y.2016-17 pa s se d b y t he AO ma y n ot b e re vi se d un de r t he p r ovi si on s of se c tio n 2 63 of the Act .
6. I n re sp on se to the s how -c a use , th e a sse ssee fi l e d h er sub mi ss ion s w h i ch we re c ons ide re d a nd f in d me n ti on in the imp ug ne d or d e r bu t for r e a sons st a te d the re i n, w e re n ot fou nd a cce p ta b le to th e Ld . Pr . C I T.
7. F ir s tly , the Ld . P r. C I T re it e r ate d hi s pr e li mi nar y fi nd i ng s as giv en in th e sh ow c a us e not ice tha t w h il e ma ki n g th e a ss es sme n t, the ne t p r e mi um /p r ofi t t o t he tune of Rs. 2 9, 7 9 ,5 4 3 /- b a si s the d e t a il s fu r ni sh e d b y th e N SEL re ma in e d u nve r i fi e d . I t w a s fu r the r he l d b y t he Ld . Pr . C I T tha t th e A O ha s a cc e p te d t he p remi u m of Rs 1 5 ,0 5 ,5 3 2 /- a s a ga i nst th e p r emi u m of Rs 4 7 , 41 , 90 7 /- a n d th e re f ore , the pr of i t e a r ne d b y th e a sse s see in tr a n sa c tin g i ts fu tur e s a nd opt ion s d ur i ng t h e c our se o f the ye a r th r oug h M /s V ik s on Se c ur i tie s Pv t. Ltd . has n ot been in ve stiga t e d a nd q ue s ti one d by th e AO a n d the A O h a s f a i le d to r a i se a n y q ue r y i n th is re ga r d.
8. I t w a s f ur th e r hel d b y th e Ld . Pr . C I T th a t t he asse ssee ha s c la ime d th a t s ta te me nt re ce i ve d fr om M/ s V ik s on Se c ur i tie s P v t. L td . is in co mp l e te a nd a c o mpl e t e st a te me nt ha s b ee n p r ovi de d b y he r a nd as p e r w hi ch , the p r e mi um e a r ne d is Rs .2 5 ,3 3 , 78 8 /-. H o w e ve r , as pe r t he s a id 6 ITA Nos.106 to 109/Chd/2021 A.Y.2016-17 sta te me n t, the re i s a cl osi ng b a la n ce of va r i ous op ti ons a n d fu tur e s a s on th e la s t d a y of th e ye a r , th e va l ue of w h ic h ha s to b e co ns id e re d f or w or k ing ou t the e xa ct p r e mi um e a r ne d by the a ss e ssee . S in ce the A O h a s fa i le d to co ns id e r the s a me , the ord e r so p a sse d by th e AO i s e r r on e ou s a nd be in g p re ju d ic ia l to the i nte re s t of the Re ve nue .
9. I t w a s fu rt he r he l d b y th e Ld. P r . C I T th a t on p e r us a l of the cop y of a c cou nt of M /s Vi k so n S e cu r itie s P vt. Ltd . , i t i s note d th a t t he a ss e s see h a s re ce ive d Rs .1 , 3 2, 30 0/- fr o m M /s V ik so n S e c ur i tie s P v t. Ltd . o n 2 9 . 04 . 20 1 5 a n d ha s p a i d Rs. 25 la c s to M / s V ik s on Se cur i tie s P vt. Ltd . on 2 0. 0 4. 2 0 15 a nd th e re a fte r ha s r e ce i ve d ba ck va r i ou s a mou nt s f r om ti me to ti me d u ri n g t h e c our se of th e ye a r . Th e Ld . Pr . CI T s ta te d tha t th e i n ve s tme n t s o ma d e by th e a sse ssee by tra n sf e r r in g a moun ts to M /s V ik so n Se cur i tie s P vt. Lt d. s hou l d ha ve be e n i nve st iga ted a n d q ue sti oned b y the A O. H ow e ve r , the AO h a s fa i l e d to r a is e a ny q ue r y i n th is r e g a r d, t he re fore , the or de r so p ass e d is e r r one ous b e i ng p re j u di cia l to the in te re st of the Rev e n ue .
10 . I t w a s a c cor d in gl y h e l d b y th e Ld . P r . C I T tha t th e AO ha s ne it he r ca l led f or re le v a nt d ocu me nt s, no r e xami n e d th e doc ume nts fi l e d b y th e a s se sse e , no r c on si de re d th e le ga l pr ov is io ns of the Act . I t wa s a l so he ld by the Ld. P r . C I T t ha t 7 ITA Nos.106 to 109/Chd/2021 A.Y.2016-17 the re i s f a il ure to ma k e p r op e r e n q ui r ie s/v e r i fi ca t ion to a rr i ve a t th e c or r e ct a nd co mpl e te f a cts a nd to a pp l y th e cor r e ct la w a n d f a i lu r e the re of m a k e s the a s se s sme nt or d er e r r one ous a n d pr e ju d ic ia l to th e i nte re st of the Re ve n ue . Th e r e a fte r re fe rr i ng to the j ud i ci a l a u th or it ie s on th e sub j e c t, i t w a s he l d t ha t the or de r s o pa s se d b y the A O i s not on ly e r r one ou s b u t a l so p re j ud i ci a l to t he i nte r e st of the Re ve nue a nd ha s been i ssue d w ith ou t p r op e r e n q ui r ie s e i the r fr om th e as se sse e o r fr om th ir d p a r ti e s to con fi r m th e re a li tie s of the ad d it ion s ma d e in ca pi ta l a n d in come sh ow n by the a sse sse e. Th e r e f or e , t he orde r pa sse d by the AO w a s se t a s i de to p ass a fr e s h or de r a f te r ma k i ng ne ce s sa r y e nq u i rie s /in ve stiga t ion s a f te r gi vin g du e op p or tun i ty to the a sse sse e .
11 . Ag a in st th e s a id f in d in gs a n d d i r e ct io ns of the Ld . Pr . C I T, th e a sses see i s i n a ppe a l be fore us . Du ri n g th e cou rs e o f he a r i ng, the Ld . AR su bmi tte d th a t th e case of the a sse sse e was se le cte d for l imi te d s cr ut in y to e xa min e wh e the r the i nve stme nt a n d i ncome r e l a ti ng t o s e c ur i tie s (d e r i va ti ve s) tr a nsa c ti ons a r e d u ly d is cl ose d b y the a sse ssee or n ot. Th e r e af te r d ur in g the cou rse of as se s sme nt pr oc ee d i ng s, n otice s u/s 1 4 3 (2 ) a nd 14 2 ( 1) of the Ac t we re is sue d ca l l in g for n e ce ssa ry i nfor ma ti on a nd e x pl a n a ti on a nd i n r e s p onse, th e a ss e ssee h a s fi le d he r sub mi ss ion s 8 ITA Nos.106 to 109/Chd/2021 A.Y.2016-17 con ta i ni ng r e q uisi te i n for ma ti on /do cu me nta t io n a s c a lled for a nd wh i ch w e r e d ul y e xa mi n e d a n d v e r i fie d b y th e AO . It wa s s ub mi tte d th a t in or de r to ve r i fy the in co me fr om sa l e a nd p u rc ha s e o f se c ur i tie s a nd de r iv a tive s tr a n sa c tio ns a s re p or te d by the a ss e ssee , not ice u/s 1 3 3 (6 ) o f th e A ct w a s a ls o i ss ue d to M /s Vi k son S e cu r it ie s Pv t. Ltd . and in re sp on se , M/s Vi k son S e cu r it ie s P v t. Ltd . vi de i ts le tte r da t e d 1 0 .0 7 .2 0 18 su b mit te d l e d ge r sta te me n t, net p osi ti on (f utu r e se gme nt)/s a ud a s u m ma r y, p r ofi t & los s s um mar y (c a sh s e gme nt) a n d D e ma t a c co u nt d e ta il of t he a s se ssee a nd th e re a fte r ta k i ng i nto con sid e r a ti on the sub mi ss ion s fi le d b y the a ssess ee , w h ic h we re in d e pe n de nt ly ve ri f ie d a nd cor r ob or a te d b y th e i nf or ma ti on s ub mi tte d b y the b ro ke r , the a s se ssme nt p r oc ee d i ng s we re co mpl e te d a cce p tin g the re tur ne d i n come s o f il e d b y the a ss e ssee . I t w a s a cco rd i n gly , sub mi tte d tha t th e f in d in gs of th e Ld . Pr . CI T th a t the AO ha s ne it he r ca l led f or the re le va nt d oc ume n ts, n or e xa mi ne d the d ocu me n ts fi l e d b y the a s se sse e , n or c ons ide re d the le ga l p r ovi si on s o f the Ac t, a r e fa c tua l l y i n cor r e ct a n d th e sa i d f i nd i ngs d e se r ve to be se t a si d e . I t w a s s ub mi tte d th a t the A O h a s c ond u cte d p r ope r en q ui r ie s a n d e xa min e d a l l fa ct s a n d a ft e r th or oug h s cr u tin y of th e doc ume nts so fi l e d , the re tu r ne d i nco me h a s be e n a cce p te d. I n su pp or t, r e l i a nce wa s p la c e d on the C oor d i na te Be nch 's d e c is i ons in th e ca se 9 ITA Nos.106 to 109/Chd/2021 A.Y.2016-17 of M /s D a r sh a n Me di c os V s. CIT ( 2 0 21 ) 62 CCH 3 41 (C h a nd i ga r h Tr i b. ) , in t he ca se of C I T V s. P a w a n Kuma r (2 0 1 5) 62 Ta x m a nn .c om 2 6 0 a n d i n the c a se of C I T Vs . Ra js hy a ma C o ns tr uct ion s P vt. Lt d . (2 0 1 2 ) 2 0 Ta x ma n n. co m 25 1 .
12 . I t wa s fu r the r sub mi tt e d b y th e ld A R th a t s ub se q ue nt to t he f in a l iz a tion of a s se ssme nt p r oce e d in gs , th e re were ce r ta i n de ve l opme n ts w h e re i n th e a sse ss ee c a me to k now tha t th e re wa s f ra ud a n d mi s-ma n a ge me nt commi tte d by the br ok e r w he re i n th e b r oke r h a d fra u du le nt ly d i min i sh e d he r in ve s te d ca pi ta l a nd w a s r un n in g a fr a u d ul e n t sch e me of a ssu r e d re tur n s p r oh ib i te d b y SE B I , p u r sua n t to w h ic h the a sse sse e f i le d comp l a i nts b e f or e v a r iou s f or ums a n d C our ts , a nd bo th th e p ar ti e s a re cu r re ntly d r a w n i n to pr ot r a cte d li ti ga ti on b oth of ci vi l a n d c r imi na l na t ur e a nd the re i s a n un de r li ne f r a ud at p la y a ga i n s t t he a ss e ssee w hi ch is cur r e n tl y s ub - j ud i ce be fo re va ri ou s F or ums a n d C our ts . I t wa s f ur t he r su bmit te d tha t on in sp e c ti on of t he r e cor d s, i t a ls o ca me to th e l ig ht of th e a s se sse e th a t Sh r i Vi ja y Kuma r Josh i, t he D ire ctor of M/s V ic ks o ns S e c ur i tie s P vt Ltd h a s fi le d a Ta x Ev a si on P e ti ti on o n 1 8 .0 5 .2 0 1 9 a ga in st the a sse sse e a n d he r fa mi l y me m b e r s ma ki n g a n a ll e g a tio n th a t he a nd he r fa mi l y me mb e rs h a ve bee n e va d i ng ta xe s b y fi li n g f or ge d in come r e co rd s . I t wa s s ub mit te d th a t Sh r i 10 ITA Nos.106 to 109/Chd/2021 A.Y.2016-17 Vi ja y Ku ma r Jos h i h a s a ls o sou g ht p e r mi ssi on t o i ns p e ct the a sse ssme nt re co rd s p e r ta i ni n g to the a sse s see , whi ch sh ow s tha t th e Ta x E va si on P e ti ti on ha s b ee n p u r sue d by h im a s a me a su r e of ve n ge a n ce a ga i ns t her f a mi ly fo r fi l ing v a r iou s ci vi l a nd c ri mi n a l c a se s a n d the Re ve nue a u thor iti e s by gr a nti n g a c ce ss to pr i va t e re cor ds of the a s se sse e a nd he r fa mi ly me mb e r s h a s a l low e d a n in te re ste d p a r ty to not ju st in sp e c t he r pe r son a l r e cor d s b ut ma ni p ul a te t he sa me b y sub mi tti ng f a ls if ie d i nf or ma ti on con tr a r y to d ocume nt a ti on pr e vi ous ly s ub mit te d by t he m. It w a s su b mitt e d t ha t th e br ok e r ha s su b m itt e d f a ls if ie d s ta te me nt i n c on tr a ve n ti on to hi s e a rl ie r s ta te me nt a ft e r ta k i ng cop y o f the same f r om th e ta x d e p a r tme nt. I t w a s su b mitt ed th a t u p on fi lin g of Ta x Eva s ion P e ti ti on, th e Ad d l .CI T, R a n ge - 6, Moh a li ha d s ough t pe r mi s si on fr om th e Ld . P r .C I T to ca l l f or r e c or d s fr om N SE L by ma k in g a r e qu is it ion u /s 1 3 3 (6 ) of the Ac t an d i n t hi s ve r y re q ue s t, the Ad d l. CI T has c le a r ly me nt ion e d th at ca l li n g f or su ch i nf or ma ti on w a s t o t a ke re me di a l ac tio n u/ s 26 3 o f th e A ct. I t w a s sub mi tte d th a t w i th out p r e j ud i ce to the n on -comp l ia n ce of C B D T me mor a n du m of p r oce d u re for de a li n g w i th TEP , it is cl e a r t ha t re cor d has b ee n re q ui si ti one d b y the l d P CI T to con d uct a n i nve st ig a ti on wh i ch is a ime d a t ta k in g r e me d ia l a ct io n u nd e r sect ion 2 6 3 of th e A ct. I t wa s s ub mi tte d tha t c a ll i ng f or su ch r e cor ds 11 ITA Nos.106 to 109/Chd/2021 A.Y.2016-17 fr om N S E L c a nn o t b e dee me d to be a re cor d f or the p u r pose of Exp l a na t ion -1 (b ) to se c ti on 2 6 3 of the Act . It w as sub mi tte d th a t th e p ro cee d in gs u /s 2 63 of the A ct, w e re noth i ng b ut r e m e d ia l a c ti on cr e ate d on th e re q ue s t of th e Ad d l. C I T a nd a p p ro ve d b y the Ld . P r . C I T. I t w a s s ub mi tte d tha t i n t he s how ca u se n oti ce , w h e re the Ld . P r .C I T h a s sta te d tha t he h a s p e r u se d t he a sse ss me nt re co rd s a nd fou nd d i ff e re n ce i n the i nc ome d e cl a r e d b y t he a sse ssee a nd the i n come a s p e r de ta i ls fu rn i sh e d by the N SEL, th e so ca l le d N SEL d a t a w a s not pa rt of th e a s se ssme nt r e cor ds a nd th e sa me ha s b ee n spe c ifi ca l ly ca l l e d f or to take re me d ia l a cti on u/s 2 6 3 of the A ct . I t w a s su bmi tte d th a t the N SE L da t a ha s b ee n co lle c te d be h i nd the b a ck of th e a sse sse e pu r po sef ul l y to cre a te a n a cti on u/s 2 6 3 of the A ct a nd t he re e xis te d no r e c or d w it h re spe c t t o N S EL dat a w h ic h ha s b ee n me re ly p l a ce d on the fil e by ma k i ng a re q ui si ti on u/s 13 3 ( 6 ) of the Ac t b y Ad d l. C I T. I t w a s sub mi tte d th a t th e e vi de n ce w h ic h w a s not a va i la b l e a t the t ime of a s se s sme nt pr oc ee d i ng s n or w a s l a w fu ll y a c q ui r e d , is be i ng use d a s the ba s is f or a ss umi ng ju r is di ct ion u /s 2 6 3 of th e A ct, w hi ch i s cl e a r ly be y ond l e g is la t ive ma nd a te , a r b i tr a r y a n d aga i n st the s pi r i t of la w .
13 . It was fu rt he r s ub mi tte d th a t the a sse ssee in a bon a f id e ma n ne r p r od uc e d the r e cor d s a va i l a b le w i th he r 12 ITA Nos.106 to 109/Chd/2021 A.Y.2016-17 a nd the br oke r h a s a l so p l a ce d on re cor d it s su b mis si on con fi r min g th e b a si s of de cl a ra tio n of i n come by the a sse sse e a nd th e a sse ssee rel i e d u p on the b r ok e r 's sta te me n t in or d e r to c omp ute he r in come a nd w h e re the br ok e r a fte r t he c los ure of t he a sse s sme n t pro cee di n gs cl a ims tha t su ch s ta te me nt s a re in cor r e c t, t he same c a nn ot be ma l a fi d e on th e pa r t of th e ass e ssee a n d the sa me w a s pr op e r l y in ve stiga te d a nd e xami ne d by t he AO . It w as sub mi tte d th a t in vok i ng of Exp la n a ti on -2 to se ction 2 6 3 of the Ac t to c la i m j ur i sd i cti on , h a s b ee n i n cor re c tl y e xe r ci se d by th e Ld . P r . C I T a s pr op e r e n q uir ie s a n d ve r i fi c a tio ns w ere don e b y t he AO a nd the ca se d oe s no t fa l l wi th i n the me a ni n g of c la use s ( a ) a n d ( b ) to E xp la n a ti on- 2 to se c ti on 26 3 of th e Act . I n su p po rt , r e l ia n ce w a s p l a ce d on th e C oor d in a te B e nche s de c is io n i n t he c a se of S a tish Kuma r La kh ma ni V s. P r .C I T (2 0 2 1 ) 12 8 Ta x ma n n. co m 26 4 a n d i n the ca se of S mt. Sh a r da b e n B . P ate l Vs. P r .C I T ( 2 01 9 ) 1 12 Ta x ma nn .c o m 1 1 8 .
14 . I t w a s f ur th e r sub mi tte d t ha t o n d e ta ile d scr u tin y of con sol id a t e d N SEL d a ta p ro vi de d b y t he l d P C IT, i t w a s obs e r ve d tha t da t a so r e c e i ve d i s i nc omp le te a s the ld P C I T ha s n ot r e ce ive d f i na n ci a l l e d ge rs , p r ofi t & l oss s ta te me nt, e tc f r om N SE L a n d e ve n f r om da ta sou ght by a sse ssee di r e c tly fr om N S EL s ub se q ue n t to r e ce ip t of t he sh ow -ca u se 13 ITA Nos.106 to 109/Chd/2021 A.Y.2016-17 noti ce u/s 2 6 3 , i t d oe s n't t a ll y. I t w a s sub mi tte d th a t tot a l a moun t e a rn e d b y the a ss e s see wa s sub s ta nt ia l l y l ow e r th at e ve n w h a t h a s b e e n sh ow n i n th e r e t ur n of in com e a nd o ver a p e ri od of thr e e ye a rs , e xce ss i nc ome to t he t un e of Rs 75 , 83 , 8 04 /- h a s b ee n s ho wn i n t he re tur n of in come a nd e xce ss ta xe s p a i d the re on . I t w a s fu r the r su bmi t te d th a t i n the tr a n sa c tio n w is e da t a of s a le s a nd p ur ch a se f ig ur e s, e ffe c t of b r oke r ag e ha s a ls o no t b ee n con si de re d w hi c h w a s a su bs ta n tia l a m ou nt a nd t he re for e , t he d a ta so r e ce ive d by the l d PC I T wa s in comp l e te . I t w a s su b mit te d tha t s a id fa ct s we re br ou gh t t o t he n oti ce of l d P C I T d ur i ng th e cou rse of r e vis ion a r y pr ocee d in gs a n d it w a s su bmi tt e d t hat the sub j e c t n oti ce i s b a se d on i nc omp le te da ta a n d i n ab se nce of a ny c onc r e te ma te r i a l on re c or d, th e p r oce e d i ngs ha v e bee n in it ia t e d and con cl ud e d u/s 26 3 of th e Act w i tho ut re b utti n g the s ub mi ssi on s so ma d e by the a ss e ssee . Wi th out p r e j ud i ce , i t w a s sub mi tte d th a t i f a t a l l, t he re i s a ny con cr e te in fo rma tio n / ma te ri a l f r om N S E L w h i ch co me s on r e cor d a n d wh i ch ha s e s ca p ed t he a tte n ti on of th e A O re su lti n g i n a n y e sc a pe me n t of i nc ome a n d w hi ch i s n ot th e ca se c ur re n tl y, th e r igh t cou r se of a c ti on w oul d b e f or the AO to i n vok e hi s j u ri sd i cti on u/s 1 4 7 of t he Ac t a n d not for the l d P C I T to a c q ui r e j u ri sd i ct ion u /s 26 3 o f the Ac t a s h a s ha p p e ne d i n t he in st a nt c a se . I t w a s a cco rd i ng ly , s ub mi tted 14 ITA Nos.106 to 109/Chd/2021 A.Y.2016-17 tha t th e or de r so pa s se d b y th e Ld. P r .C I T u /s 2 6 3 b e q ua sh e d a n d se t a s id e i n a b se n ce of re q ui si te jur is d ic ti on a nd a l so on me ri ts of the ca se wh e re the ma tter ha s b ee n pr op e r l y e xa mi n ed b y th e Asse s sing of fi ce r . 15 . P e r con tr a , the L d. C I T D R d r a wn our r e fe re nce to the pr ov is io ns o f s e ct ion 2 63 of th e Ac t a n d s ub mi tte d th a t th e Ld. P r . C I T ma y ca l l f or a n d e xa mi n e t he re c or ds of a n y pr oc ee d i ng s un de r th is A ct a nd if h e con si de r t ha t a ny or de r pa s se d th e re i n b y t he A O i s e r r on e ou s i n so f a r it i s pr e ju di ci a l t o t he i nte re s t o f the Re ve nue , he ma y, a f te r giv i ng t he a s se sse e a n op po rt un ity of be in g he a r d a nd a f te r ma ki n g or c a usi n g to be ma d e s uch e n q ui r ie s a s he de e ms ne ce s sa r y, p a ss su ch a n or d e r the re on a s the c ir cumst a nc e s of th e ca se ju stif y in cl ud i ng se tti n g a si de the o rd e r a s h a s be e n do ne in the p re se n t ca se . I t wa s su b mit ted th at the te r m 'r e c or d' ha s a l so b e e n de fi ne d in Exp l a na t ion -1 to se c tio n 2 6 3 of the Act a nd i t ha s b ee n p r ovi ded th a t th e re cor d sh a ll i nc lu de a nd sh a l l b e dee me d a lw a ys to ha ve in cl ud e d a l l r e co rd s r e l a tin g t o a ny p ro ce e di n gs u nd e r t hi s Act a va il a b le a t th e t ime of e xa min a ti on b y the Ld . P r .C I T. I t wa s a ccor d i ng ly s ub mi tte d th a t the re cor d s of the as se ssee ma in ta i ne d w i th N SE L a re pa r t of th e p ub l i c rec or ds a nd wh e n the y w e re ca l l e d for a nd e xa min e d by t he L d . P r .C I T, the s a me a r e ver y much f or m p a r t of th e re cord s a s so 15 ITA Nos.106 to 109/Chd/2021 A.Y.2016-17 de fi ne d i n the Act wh i ch t he l d P C I T is e mp o w e re d to e xa mi ne a n d t a ke i n to con si de r a ti on w h il e i ni ti a ting a c ti on u/s 2 6 3 o f th e Ac t a nd , the re fo re, th e c onte nt io n ad va n ce d by th e Ld . AR i n thi s r e ga rd ca n not b e a cce p te d . 16 . Re ga r d in g the con te n ti on a dv a nced b y the Ld. AR th a t the AO ha s i ndep e n de n tl y c a lle d for t he re co rd s f ro m M /s Vi ks on S e cu r it ie s P vt. Lt d. u/s 1 3 3 (6 ) of the Act, i t w as sub mi tte d th a t i t is n ot i n d i sp u te t ha t th e A O di d c a ll for the in fo rma t ion u/s 1 33 ( 6 ) of th e Ac t vi de le t te r d a te d 02 . 07 . 2 01 8 a n d c e r ta i n i nf or ma ti on ha s b e e n p r ov id e d b y M /s Vi ks on S e cu r iti e s P v t. Ltd . vi d e it s le tte r d a ted 10 . 07 . 2 01 8 . A t th e sa me ti me , our r e fe re nce w a s d r aw n to the e xtr a c ts o f th e Ta x Eva s ion P e ti ti on fi le d on 18. 0 5 .2 0 1 9 a va i la b l e as par t of a s se s see 's P a pe r B oo k pa ge N o. 34 wh e re in i t ha s b e e n a l le ge d th a t the or i gi na l p ro fi t re p or ts we re re p l a ce d w i th th e d u pl i ca te re p or ts w i th th e con ni va n ce of th e AO . I t w a s su b mitt e d th a t gi ve n s uc h a ll e ga tio n, whe n th e d e ta il s w e re a ga i n c a l le d f or fr om M /s Vi ks on S e cu r it ie s P vt. Ltd ., it h a s b ee n fo un d tha t th e re is di f fe re nce i n the in come re tur ne d b y th e a s se sse e an d wh a t ha s b ee n s ub mi tte d b y M/s Vi k s on S e c ur i tie s P vt. Ltd . It wa s a c cor d i ngl y su b mitt e d th a t b a si s suc h d if fe r en ce s i n the in come , th e i n forma ti on w a s f ur th e r ca l le d for d i rec tly fr om the N SE L a nd a ga i n , i t w a s foun d t ha t the re h a s b ee n 16 ITA Nos.106 to 109/Chd/2021 A.Y.2016-17 di f fe re nce i n te rms of the in co me offe re d b y t he a sse ssee a nd w h a t h a s b e e n p r ov ide d by th e N SEL. I t w a s a c cor d in gl y sub mi tte d t ha t i n the li gh t of t h e sa i d i nf or ma t io n w h ic h ha s c o me on r ec or d w h e r e the Ld . P r. C I T h a s i ni ti a te d a cti on u /s 2 63 of t he A ct, the re is no i nf ir mi ty i n su ch a n a cti on w h e re b y he h a s d i re cte d th e AO to ve r i fy t he s a id de ta i ls w h ic h has r e s ul te d in un de r -a sse ss me nt of i n come i n the ha n d s of t he a sse ssee . He a cc or di n gl y, s up p or te d the fi nd i ng s of th e Ld . P r . C I T. 17 . W e ha ve h e a r d the r i va l co nte ntion s a nd pu r us e d the ma te r i a l a v a il a b le on re c or d. I n the con te xt o f ass e s see 's tr a ns a cti on s in th e F & O S e gme nt and re su l ta nt n et pr of i t/p re miu m a ri si n g the re f rom, w hi ch a r e un d is p ute d l y sub j e c t ma tte r of li mi te d sc ru ti ny b e fore t he A O, th e Ld . Pr . C I T ha s he ld th a t the AO ha s n e i the r ca l le d f or r e le va n t doc ume nts , n or e xa min e d th e d ocume nt s fi l e d by the a sse sse e , no r con si d e re d the l e g al p r ov is io ns of t h e Act a nd the re a fte r , i t wa s a l s o h e l d b y t h e Ld. Pr . C I T th a t th e re i s fa i lu r e t o ma k e pro pe r e n q ui r ie s/v e r i fi ca ti on to a rr iv e a t the cor r e ct a nd c omp le te f a cts a n d to a p p ly the cor re ct l a w a nd fa i lu r e t he re of ma k e s t he a ss e ss me n t or d e r e r ro ne ous a nd pr e ju di ci a l to the in te re st of the Re ve nue . We the re f ore fi nd tha t in th e con te x t of e xa mi ni ng a si ng ul a r ma tte r i .e , a sse sse e 's tr a n sact ion s i n th e F & O Se gme n t a n d re su lta nt 17 ITA Nos.106 to 109/Chd/2021 A.Y.2016-17 ne t p r of it /pr e miu m a ri s in g th e r ef r om, th e r e a r e two s e ts of fi nd i ng s b y th e l d P C I T a nd i n t h e f i r st se t of f in d in gs, i t ha s b e e n h e l d tha t i t i s a ca s e of l a c k of e n q ui r y or no e nq u i ry on p a r t of th e As se s si ng of fi ce r a n d i n th e se c ond se t o f f in d in gs , it h a s bee n he l d th a t th e re h a s be e n fa i lure on th e pa r t of the A sse ss in g to ma ke p r op e r e n qui r ie s a nd ve r i fi ca t ion . I t c a n e i the r b e a c a se o f l a ck o f e nq u ir y on pa r t of th e AO or w he re the e n qui r ie s ha ve bee n c ond uc te d by th e A O, p r oper e nq u ir ie s h a ve not b ee n c ond u cte d by the AO a nd we the ref or e f i nd the se tw o se t of fi nd i ng s b y t he ld PC I T a s s e l f-c ont ra d i cto ry .
18 . H a vi ng s a id t ha t, i f w e e xa mi n e t he fa c ts of the pre se n t ca se w he re a re e me r gi ng fr om re cor d s, we fi n d th a t the a sse sse e i n he r r e tu rn of i nc ome h a s sh ow n i n come on a ccou nt of F & O a t Rs .1 7 , 62 , 3 64 /-, d ur i ng th e cou rs e of a sse ssme nt p r oce e d in gs , not ice u/s 1 4 3( 2 ) d a te d 1 3. 0 7 .2 0 1 7 wa s i ssu e d c a ll i ng for i nf or ma ti on a nd e x pl a n a ti on f r om the a sse sse e spe c if ica l ly to e xa mi ne w he the r the in ve stme nt a nd in come r e l a ti ng to se c ur i tie s ( de r iv a ti ve ) t ra n sa c ti ons a n d i n re sp on se , the a sse ssee ha s fi le d h e r s ub mis si on s c ont a in i ng re q ui si te in f or ma tio n/d oc u me n ta ti on a s ca l le d fo r. Fu r the r , in or d e r to ve ri f y th e in come so di s cl ose d , n oti ce u/s 1 33 ( 6 ) of the Ac t d a te d 2 .0 7 .2 0 1 8 w a s a ls o i ss ue d b y the A ss e ss in g off ic e r to the b r ok e r , M/s V ik s on S e c ur i tie s Pv t. Ltd . a n d i n 18 ITA Nos.106 to 109/Chd/2021 A.Y.2016-17 re sp on se , M/s Vi k son S e cu r it ie s P v t. Ltd . v i de i ts le tte r da t e d 1 0 .0 7 .2 0 18 su b mit te d l e d ge r sta te me n t, net po si ti on (f utu r e se gme nt)/s a ud a s u m ma r y, p r ofi t & los s s um mar y (c a sh s e gme n t) a nd De ma t a c cou nt d e t a il s of th e a ss e ssee . I t is n ote d tha t a s p e r t he de ta il s so fu r ni sh ed b y M /s Vi ks on S e c ur i ties P v t. Lt d. d ur i ng the cou r se o f a s se s sme nt pr oc ee d i ng s, th e ne t p r e mi um /p r ofi t a m ou nt s to Rs. 15 , 0 5, 5 3 2/- a s a g a in st gr os s fi gu r e of Rs 17 , 6 2, 3 64 /- a nd r a te s a n d ta xe s of R s 2 ,56 ,8 3 2 /- d is cl ose d b y th e a sse sse e . Ta ki n g i nto con si d e r a tion t he fi gure s so di s cl ose d by th e a s se s se e i n he r re tu r n of i n come su pp or te d b y the a ud it e d fi n a nc ia l s ta te me nts and othe r d ocu me nt a ti on wh i ch we re a l so p l a ce d on r e cor d d u ri n g th e co ur se of a sse ssme nt p r ocee d i ng s a n d t a kin g i nto c ons i de ra tio n th e in for ma t ion /d oc u me nt a ti on so su pp l i e d di re c tly by M/s Vi ks on S e cu r itie s P v t. Ltd . and th e re b y i nde pe nde ntl y ve r i fy in g a n d r e con ci li n g th e sa m e , the ne t p re mi um /i n co me of Rs. 1 5, 0 5 ,5 3 2 /- so d is cl ose d b y t he a sse s see w as a cc e p te d by th e A sse ss in g off ic e r . I t i s the r e fo re n ot a case w h e re n o e nq u i ry ha s be en c on du cte d b y t he A sse ss in g offi ce r , the Ass e ss i ng offi ce r has c a ll e d fo r th e in for ma t ion /d oc u me nt a ti on to ve r i fy the cl a im of th e a sse sse e , ha s the re a f te r ca l le d for t he i n for ma ti on fr om th e a sse sse e 's b r oker th r ough w h om th e tr a n sa ct io ns in the 19 ITA Nos.106 to 109/Chd/2021 A.Y.2016-17 F & O Se gme nt ha s b ee n con d ucte d a n d the re a fte r , tak in g in to con si d e r a ti on , the e nt ire t y of i nf or ma ti on a nd doc ume nta t ion a nd in a bs e n ce of a n y con tr a r y f a c ts a nd fi gur e s, the ass e ss me n t p r ocee d i ng s we re comp l e te d a cce pt in g the re tu r ne d i nc ome so f i le d b y the a sse s see . We the re fo re do not a g re e w it h th e fin d in gs of the L d. Pr . C I T tha t th e A O h a s n e i the r c a lle d for the re le v a nt d ocu me n ts nor e xa min e d th e ma t te r a n d a p pl i e d the l e g a l p r ov is ion s of the A ct a nd it i s the re f ore cle a r ly n ot a c a se of n o e nq u i ry or la c k of e n q u ir y and the f i nd i ngs of the l d P CI T i n thi s r e gard a re se t-a si de a nd the con te n ti ons so a dv a nc e d b y th e l d AR a re a c ce p te d .
19 . N ow , comi ng to oth e r f in d in gs of t he ld P C I T th a t pr op e r e n q ui r ie s w h ic h sh ou ld h a v e be e n c ond u cte d b y the AO h a ve n ot b ee n con d ucte d a nd the re f ore , the or de r so pa s se d by the AO i s e r r one ous i n so fa r a s p re ju dic ia l to the in te re st of the Re ve nue . Th e l d P C I T h a s r e fe r re d to d e ta il s fu rn i sh e d by the N S EL wh e re in the ne t p r e mium /p r of i t come s to Rs. 4 7 , 4 1 ,9 0 7 /- a n d i t w a s he l d th a t wh i le ma k in g the a sse ss me n t, th e d i ffe re nti a l ne t p re mi um /p r ofi t a moun ti ng to Rs. 2 9 , 79 , 54 3 /- r e ma i n e d un ve r if i e d a nd wh i ch h a s, th e r ef or e , e sc a pe d a sse ssme nt i n y our cas e a nd the re fo re , t he o rd e r s o p a sse d by th e As se s si ng off i ce r i s e r r one ous i n so fa r a s pre ju d icia l t o th e i nte rest of th e 20 ITA Nos.106 to 109/Chd/2021 A.Y.2016-17 Re ve nue . I n oth e r w or d s, the f in d in gs of t he ld P C I T r e st sol e l y o n t he i nfor ma ti on fu r ni sh e d b y N SE L a s p e r w h ic h a pp a r e n tl y, the r e is d i ffe re n ce in ne t p r ofit/p r e mi u m re p or te d by t he a s se sse e a nd a s p e r the da ta w h i ch h a s be e n f ur n is he d by N SEL.
20 . Ad mi tte dl y and u nd i sp ut e d ly , th e in fo rma tio n so sou ght a n d fu r ni sh e d by N S EL w a s n ot on r e co rd at t he ti me of pa s si ng of th e a s se ssme nt or de r a n d th us w a s n ot p a r t of the a sse ss me n t r e c or ds a t the time of e xa min a ti on b y the Ass e ss i ng o ff ice r. We w il l come t o th e con te nti on a d va n ce d by th e l d A R l att e r i n the c onte xt of w he the r th e sa me con sti tu te "re c ord " in the con te xt of se c ti on 2 6 3 of t he Act. Fi r stl y, th e q ue sti on th a t a ri se s for con si d e r a ti on is w h e ther the AO w a s r e qu ir e d to c a ll f or i nf or ma ti on fr o m N S E L o r we re th e re a ny ci r cums ta n ce s w h i ch a r e a p p a r e n t on r e co rd wh i ch c oul d h a ve ne ce s si ta te d to v e r ify the i nf ormati on, so sub mi tte d b y th e a s se s see du r in g th e co ur se of a sse s sme nt pr oc ee d i ng s, n ot ju st w it h the b r ok e r thr ou gh w h om th e a sse sse e h a s tr a n sa ct e d , b ut a ls o th ro ugh the d e si gn a ted stoc k e xch a nge i. e , N SE L w h e re th e tr a n sa c tio ns w e re so con du cte d on b e ha l f of th e a s se s se e and w he re the ci rc ums ta nc e s s o e xis t a nd wh i c h w e r e a p p a re n t on r e co rd du r in g t he cou rse o f a s se ssme nt pr oc ee di n gs, whe the r the AO h a s fa il e d to ca r r y out su ch ve r i fi ca t ion wi th the s tock 21 ITA Nos.106 to 109/Chd/2021 A.Y.2016-17 e xch a n ge a nd in w h i ch ca se , i t ca n be he l d tha t p r op e r e nq u i rie s w hi ch sho ul d h a ve b e e n ma d e h a ve n ot b e e n con du cte d b y the A O r e su lt in g in th e a ss e ss me nt or d e r so pa s se d a s e r ro ne ous i n s o fa r a s p r e j ud i ci a l t o the in te re st of th e Re ve nue .
21 . O n c a r e fu l pe ru sa l a n d e xa min a ti on of th e a s se s sme n t pr oc ee d i ng s a s a p pa r e nt fr om r e c or d s ma d e a v a i la b l e be f ore us, we f i nd that th e As se ssi n g off i ce r ha s c a lle d fo r the in for ma t ion /d oc u me nt a ti on f r om th e a sse ssee to e x a mine the ne t p r of it/p r e mi um fr o m t r a n sa c ti ons i n t he F & O Se g me n t a nd to ve r if y the f igu r e s s o r e p or te d i n th e re tu r n of i n come , a n d ha s th e re a f te r , to in d e pe n de nt ly ve ri f y the sa i d f ig ur e s ha s fu rt he r c a lle d f or the in for ma t ion fr om th e a sse sse e 's b r oker th r ough w h om th e tr a n sa ct io ns in the F & O Se gme nt we re c ond ucte d and the rea f te r, the a sse ssme nt p r oc ee d i ng s we re c ompl e t e d a cce p ti ng th e fi gur e s of i nc om e so r e p or te d a nd r e t ur ne d i n come so f il e d by th e a s se s se e w a s a cce p te d . W e t he re fo re f in d th a t w h ere the fa c ts a n d fi gu r e s s o r e p or te d in th e r e tu r n o f i nc ome we re ve r if ie d w ith t he do cume nt a tio n s o su b mitt e d b y the a sse sse e a s w e l l a s cr os s-ve r if i ed w i th th e b ro ke r w h o h a s in tu r n su bmi tt e d the d ocu me nta ti on in sup p or t the re of , a nd w he re the f act s a n d fi gure s so r e p or te d we re r e c onc iled a nd the re wa s n oth i ng p r ima f a ci e a bn or ma l i n te r ms of 22 ITA Nos.106 to 109/Chd/2021 A.Y.2016-17 dou b ti ng th e fac ts and fi gu re s or for th a t ma t te r , the a uth e n ci ty of a ny d ocu me n ta ti on s o s ub mi tte d w hi c h cou ld ha v e r a i se d a ny s usp i ci on ca l l in g f or fu r the r or more e xte ns ive a n d de e pe r e xa min a ti on , w e fi nd t ha t t he re w as noth i ng on r e co rd wh i ch occ a si on a n y f ur th e r ve r i fi ca ti on or e xa mi na ti on b y th e A O in te rms of se e k in g a n d e n q ui r in g fa ct s a nd fi gu r e s w i th N S EL in re spe c t of a ss e s see 's tr a ns a cti on s so un d e r ta ke n th r ough th e b r oke r . Th e AO h a s don e wh a t a ll w a s e xp e cte d f r om h im a n d he has carried out necessary examination and verification as was expected from him i n te r ms of di sc ha r g e of h i s st a tut or y fu nc ti o ns a nd a s a person of reasonable intellect and understanding, nothing more could have been expected in the facts and circumstances of the present case. Th e r e f ore , in ou r con si de re d vi e w , the AO w a s n ot r e q u ir e d to c a ll for i nf or ma ti on f ro m N S EL nor the re we re any c ir cu msta nce s w h i ch we re app a r e n t on re cor d w h ic h cou ld h a ve nece ssi ta te d to ve r i f y the in for ma t ion , so s ub mi tte d b y th e a ss e ssee w it h N SEL du r in g the c our se of a s se ssme nt p r oce e d in gs and th e re f ore , it ca n not b e he l d t ha t p ro pe r e n qu ir i e s w hi ch s ho ul d ha v e be e n ma d e ha v e not b ee n con d uct e d b y the A O a n d the fi nd i ng s of th e ld P C I T i n t hi s r e ga r d a r e t hu s se t-a s id e a nd the a sse s sme n t or de r so p a sse d b y the A O ca n no t b e he ld 23 ITA Nos.106 to 109/Chd/2021 A.Y.2016-17 e r r one ous i n so fa r a s pre ju d icia l t o th e i nte rest of th e Re ve nue on th is a ccou nt .
22 . N ow , comi n g to the c onte nt io n a d v a nc e d b y t he ld AR tha t su bs e q ue n t to comp l e ti on of a ss e ss me n t p r oce e d in gs to ta k e re me di a l a ct ion u /s 2 6 3, th e re cor d s h a ve bee n s ough t fr om N S E L a n d s u ch r e cor d s ca n not b e d ee me d to be r e co rd for the p u r pose s of e xp l a na ti on 1 (b ) to se c tio n 2 63 of th e Act . W e f in d t ha t i n c ont e xt of se cti on 2 6 3 , the me a ni ng of te r m "r e c or d " is no mor e res in tegr a and the le ga l pr op os it ion a s l a i d d ow n by t he Ho n' ble S up r e m e C o u rt i n ca se of C omm iss io ne r of In c o me -t ax v. S h re e Ma nju na t h e sw a r e Pa c kin g P r od u c ts & C a m p ho r Wo rk s [1 9 9 8] 96 Ta x ma n 1 ( SC ) r e a d s a s un d e r :
" 1 4. It, th eref o re, can n o t be sa id , a s co n ten d ed b y th e l earn ed c ou n sel f or the re s pon de n t, th a t th e c orre c t an d se ttl e d l eg al po si tio n , wi th re spec t to the me an in g o f th e wo rd 're cor d' til l 1 - 6 - 1 98 8 , wa s t ha t i t me an t the r e cor d wh i c h wa s av ail a bl e to th e IT O a t th e ti me of p a ssin g of the a sse ssmen t ord er. F u r th er , we d o n o t th in k th a t su c h a n arro w i n ter pre ta ti on of th e wo rd 'r eco rd' wa s ju stif ie d, in v ie w of the o b je c t of the pro v i sion an d th e n a tu re an d sc o pe of th e po we r c onf err ed u pon th e Co mmi ssio ne r. T h e re vi sion al po we r c onf e rred on th e 24 ITA Nos.106 to 109/Chd/2021 A.Y.2016-17 Co mmi ssio ne r u n de r sec ti on 2 6 3 i s of wi d e a mpl i tu d e. It en a bl e s th e Co mmi ss io ne r to c all f or an d ex am in e th e rec ord of an y pro ce ed in g u nd er th e Ac t. It e mpo we r s th e Co mmi ssio ne r to ma ke o r c au se to be mad e su ch en quir y a s h e de e ms ne c es sar y in ord er t o f in d ou t if an y ord er p a sse d b y th e A sse s sin g Of f icer is er ron eou s in sof ar a s i t i s pre ju d ic i al to the in tere s ts of th e r even u e. Af ter ex am in in g the re c ord an d af ter m a kin g o r c au sin g to be mad e an en qu ir y if he co nsid e rs th e ord er to be erro n eou s the n h e c an p as s th e o rde r th ere on a s th e c ir cu msta n ce s of the c ase ju stif y. O bv iou sl y, a s a r esu l t of th e e nqu ir y, h e ma y co me i n po sse ssion of n e w ma ter i al and he wo ul d be en ti tl e d to take th a t n e w ma ter i al in to ac c o un t. If the ma teri al , wh i c h wa s no t av a il a bl e to th e IT O wh en h e m ade th e a sse ssmen t c ou ld , th u s, be ta ken in to c on sid er a tio n by th e Co mmi ssio ne r af ter h ol d in g an en qu ir y, th ere is no rea son wh y the m a ter i al wh ic h had alre ad y c ome on rec ord , th ou gh su b seq ue n tl y to the m a kin g of th e a sse ssmen t, c an n o t be ta k en in to co ns ider a ti on b y hi m. Mo reov er, in v ie w of th e c l e ar word s u se d in cl a u se ( c ) of th e E x pl an a tio n to se c tio n 2 6 3( 1 ) , i t h a s to be h el d th a t wh i l e c al l in g f o r an d e x a mi nin g th e rec ord of any proc ee d in g u n d er sec ti on 2 6 3( 1 ) i t is an d it was o pen to 25 ITA Nos.106 to 109/Chd/2021 A.Y.2016-17 the Co m mi ssion e r n o t o n l y to c on si d er th e re co rd of th a t proc ee d in g bu t al so th e rec o rd rel a ti n g to th a t proc ee d in g av ail a bl e to h im a t the ti me of ex am in a ti o n. "
23 . Th e r e v is i ona l p o w e r s c onfe r re d on the l d P C I T u / s 2 63 is the re f ore of w id e a mpl i tud e a nd h e c a n c a ll f or a n d e xa mi ne the r ec or d of any p r ocee d in g un de r t he A ct a va i la b l e to h im a t t he ti me of e xa mi n a ti on a n d h i s p ow e r s a re no t re s tr ic ted to re co rd of a ny p r oce e d i ng un de r the A ct a s a va i l a bl e a t th e ti me of e xami na t ion b y the A ss e ss in g off ic e r . B oth th e ma te ri a l w hi ch h a s come on r e cor d th ou gh sub s e q ue nt to ma ki n g of a s se s sme nt or de r a s we l l a s ne w ma te r i a l a ft e r m a k i ng o r ca u si n g t o b e ma d e a n e n q ui r y wh i ch h a s c o me i n h is p os se ssi on , th e l d P C I T w ou ld b e e nt itle d t o ta ke th a t ma te ri a l in to a c cou nt f or th e p ur p os e s of e xe rc ise of ju r is d ic tio n u/s 2 63 of the A ct. I n th e in sta n t ca se , we the re f or e fi nd th a t t he i nf or ma ti on s o s oug ht a n d ca l le d f or fr om N S EL su b se q u e n t to p a ss i ng of the a sse ssme nt or de r a n d w h ic h h a s come in hi s p oss e ss i on a t the ti me of is sue of th e s how -c a us e , t he sa i d in f orma tio n i s cl e a r ly pa r t of th e re c or d ava i la b l e at t he time of e xa mi na ti on b y t h e l d P C I T a nd he is we ll w i thi n hi s p ow e r to ta ke the sa me in to con si de r ati on w hi l e e xe r cis in g hi s ju ri s di ct ion u /s 263 of th e A ct read wi th ex pl a n a ti on the re to.
26 ITA Nos.106 to 109/Chd/2021
A.Y.2016-17 24 . N ow , i n te r ms of the i nf or ma ti on so r e cei ve d fr om N SEL, i n the sh ow -ca use no ti ce , th e l d P CI T ha s st ate d th at a s p e r d e t a il s fu rn i sh e d b y N S EL, the ne t p r emi u m /p r ofi t come s to Rs 4 7 ,41 ,9 0 7 /- a s a ga i n st fi gu re of R s 17, 6 2, 3 64 /- sho wn b y th e a s se sse e i n he r r e t ur n of i nc ome . I n t hi s re ga r d , w ha t i s re le v a nt to de te rmin e i s w he t he r th e f igure of R s 4 7 , 41 , 90 7 /- i s a ta n gi b le a nd de te r mi na t iv e n umb er wh i ch i s sup p or te d b y a de q u a te d ocu me n ta ti on or n ot a nd wh e the r t he sa me re fle c ts t he ne t r e s ul ts of tr a n sac ti ons so un de r ta ke n by t he a sse ssee d ur i ng th e year u nde r con si de r a ti on. In oth e r w or ds , w he the r th e sa me can e ffe c ti ve l y re p l a ce the fi gu re so re p or te d b y t he asse ssee or wh e the r the s a me ca l l fo r fu r the r e x a min a ti on a nd ve r i fi ca t ion a n d i f so, w he the r su ch e x a min a ti on has b e e n un de r ta ke n by th e ld P CI T and what a re the sp e ci fi c fi nd i ng s r e co rde d b y t he l d P CI T i n th i s re ga r d ba si s w h ic h the a s se ssme nt or d e r ha s be e n h e l d a s e r r one ous in so fa r a s p r e j u di ci a l t o t he i nte re st of Reve nue . 25 . I n th i s re ga r d , i t ha s bee n c onte nd e d by the l d A R th a t on d e ta i le d sc ru ti ny o f co nso li d a t e d N S EL da t a pr ov id e d by the ld P CI T, it was ob se r ve d th a t d a ta so r e ce i ve d is in comp l e te a s the l d P CI T h a s n ot r e ce ive d f i na n cial l e d ge r s , pr of i t & l oss s tate me nt , e tc fr om N SE L a n d e ve n f ro m d a ta sou ght b y a ss e ssee d ire ctl y fr om N SE L s ub se q ue n t to re ce ip t 27 ITA Nos.106 to 109/Chd/2021 A.Y.2016-17 of t he sh ow -ca use n oti ce u/s 2 63 , i t d oe s n't ta l ly . I t w a s sub mi tte d th a t tota l a mo un t e a r ne d b y the a sse ssee w as sub s ta nt ia l l y l ow e r th a t w ha t ha s b ee n sh ow n in t h e re tu r n of in come a n d ove r a pe ri od o f t hree ye a r s, e x ce s s in come to the tune of Rs 7 5 ,8 3 , 80 4 /- h a s b ee n sh ow n i n the r e tu r n of in come a n d e xce ss t a xe s p a i d the re on . I t w as f ur th er sub mi tte d th a t i n th e tr a n sa ct ion w is e d a ta of s a le s a nd pu r ch a se f i gure s, e ffe c t of b r oke r a ge w a s a ls o n ot bee n con si de re d w h ich w a s a su b sta n ti a l a moun t a nd t he re fore , the d a ta so r e ce i ve d b y the l d P C I T w a s i nc o mp le te a nd ca n not b e re l ie d up on . I t w a s sub mi tte d th a t sa i d fa c ts we re br ou gh t t o t he n oti ce of l d PC I T d u r in g the c our s e of re vi si on a ry p ro cee d in gs, h owe ve r , w i th out re b utti n g the sub mi ss ion s so ma d e , th e p r oce e d i ngs u/s 2 6 3 ha v e bee n con cl ud e d . We f in d me r i t in th e con te n ti on s s o a d v a nc e d by the ld A R a s e v ide nt fr om t he a sse ssee ' s s ub mis si on s b e f ore the l d P CI T w hi c h a ls o fi n d me n ti on i n the i mp ug ne d or der a nd t he s a me re ad a s un d e r :
" P ar a 8 . Fu r the r, vid e ou r requ es t su b mi tted on e - proc ee d in g s on 1 3 /0 3 /2 02 1 , yo ur of f ic e wa s ver y k in d to se nd u s co n s ol id a te d d a ta wh ic h i s th e b a si s of su b jec t n o ti c e.28 ITA Nos.106 to 109/Chd/2021
A.Y.2016-17 W e h ave p a i n sta k in gl y an al yze d th e who le d a ta b y c on ver ting the sa id d a ta in exc el f orma t an d se greg a tin g the sa me f or rele van t a sse sse s. Fr om ou r d eta ile d sc ru ti n y of th e d ata per tai n ing to th e su b jec t a sse ssee , we h ave ob serve d th a t th e d ata re ce iv ed i s in co m ple te a s i t d oe sn ' t ta l l y wi th th e d a ta r e ceiv ed th rou gh NS EL b y u s. Y ou r of f ice h as n o t ev en re ce iv ed f in an c i al ye ar s, prof it & l oss sta te men t, e tc. f ro m NS EL wh ich we re n e ce s sar y t o arr ive a t th e c o rrec t inc o me e arn ed in the su b jec t ye ar . W i th ou t th e se st a te men ts, i t i s al mo st i mpo s si ble to arr ive a t the cor rec t f igu re of in c ome du e to be lo w l i sted re a son s:
1 . T h a t th e a mou n ts g iven in th e tr an sac ti on wi se da ta the sal e an d pu r c h ase f igur es ar e gro ss f igu res wh i ch d on ' t in cl u d e th e ef f ect of broke rage d ed u c ted b y th e bro ke r on s al e a nd ad d ed b y th e bro ker on pu rch a se .
T h is a mou n t i s a su b stan tia l a mo u n t. T he co mp ar ati ve c har t sh o wi n g d i f f ere nc e in a f e w scr i p s ( a s men ti o ne d in the c a se of S uni ta Gu p ta ) sh o wing th a t bro ke r ag e h a s n o t bee n co n s ide r ed in the d a ta a v a il abl e wi th you , th a t i s wh y th e sa me su b sta n tia l l y d o esn ' t ma tc h wi th th e prof it/l o ss f igu res mad e av a il a bl e b y u s th ro ug h NS E L . T h eref ore, th is d ata be in g gro ss a mou n t d oe sn ' t p r ovid e you wi th th e co rr ec t e arn ing s of th e a sse ssee . 29 ITA Nos.106 to 109/Chd/2021
A.Y.2016-17 2 . T h a t th e to ta l su m of l ots pu rc h a sed in th e da ta prov id ed b y you is n o t e qu al to the to ta l su m of l ots sol d in the d a ta pro vide d b y you , r e su l ti n g the re b y more sal e s/ pu rc h ase o f th e l o ts wh i c h r equ ire s re co nc il i a tio n bec au se in an y c ase th e to tal pu r ch a se mu st ta ll y wi th the to ta l l y sal e s , th eref ore , i t a ppe ar s th at th e da ta rec eive d b y th e d e par tmen t i s in co m ple te. 3 . Y ou r are req ue ste d to a sk f or th e f in an ci al l ed ger an d P& L ac cou n t of th e a sse sse e thr o u gh NS EL , on l y wh i c h c an g iv e th e cl ea r p ic tu re of ou r earn in g s o th er wi s e th e wh ol e ex erc ise wi ll be f u til e. "
26 . W e a ls o n ote tha t th e l d P CI T h a s a ck n ow l e d ge d t hi s fa ct tha t the deta i l s s o re ce ive d w e re in comp l e te and h a s he l d th a t cl osi ng b a la n ce s of var i ous op ti ons a nd f utu r e s ha v e to be c ons id e re d for wo rk i ng ou t th e e xa ct pr e mi um b y the a sse sse e a n d h a s d i re cte d t he A sse ss in g of fi ce r t o pa s s fr e s h o rde r a fte r ma k i ng ne ce s sar y e nq u i rie s /ve rif ic a ti ons . We the re f ore fi nd tha t th e f i gur e of Rs 47 , 4 1, 9 0 7/- w a s a br oa d , u n-r e c onc i le d fi gu re f or mi ng p a rt of raw d a ta pr ov id e d b y N SEL a nd ca n not b e te r me d a s tang ib l e a nd de te r mi na t iv e n umb e r r e fle c tive of n e t pre miu m e a r n e d by the a s se s se e a nd w hi ch i s n ot e ve n su pp or te d b y a d e q u a te doc ume nta t ion a s a pp a r e n t f r om th e f in d in gs of t he ld P CI T 30 ITA Nos.106 to 109/Chd/2021 A.Y.2016-17 wh e re he h ims e l f a ck no wl e d ge s a s i n comp l e te a nd di r e c t the Ass e ss i ng of fi ce r to e xa mi n e a nd ve r i fy the sa i d f i gur e s . 27 . H a vi ng a ck no wl e d ge d thi s f a ct of i nc omp le te d a ta wh i ch doe sn 't re f le ct t he ne t re su lts of t ra n sac ti ons so un de r ta ke n by t he a sse ssee d ur i ng th e year u nde r con si de r a ti on, i t i s a ls o c le a r tha t r ig ht fr om the st a ge o f sho w- ca us e ti ll p a ssi n g of th e imp ugn e d or d e r , th e l d P CI T ha s ma in ta i ne d a s ta tu s q uo or ra t he r a s i le nce a nd h a s bl i nd l y gone b y th e in i tia l fi gu re so sta te d i n the sh ow -ca u se noti ce a n d no e ffor ts ha v e be e n ma d e e ve n to loo k at the re con ci l ia ti on so s ough t to be ma de by the a ss e ssee . Th e r e for e , e ve n ta ki n g in to co nsi d e r a ti on the f re sh ma te r i a l/d a ta re ce i ve d f ro m N SE L, w h i ch r e p r e se nt a b r oa d , un -r e con ci le d r aw d a ta , th e s a id da t a a n d the f ig ur e of Rs 4 7 ,4 1 ,9 0 7 /- ca n not be te r me d as ta ngi b l e a nd de te r mi na t iv e numb e r by a n y st re tch of i ma gi na t ion a nd i n a bs e n ce o f a n y spe ci fi c fi nd i ng reco rd e d b y the ld P C I T, th e sa me c a nn ot f or m th e b a si s for h ol di n g th e a sse s sme n t or de r so p a sse d a s e r ro ne ous in so f a r a s p r e j ud ici a l to the in te re st o f Re ven ue . We f in d tha t s imi l a r vi e w ha s b ee n ta k e n by th e C oo r di na t e D e lh i Be n c h i n ca se of C IT V s. Ra j sh ya ma C o ns tr u c ti o ns P vt. Lt d ( S u pr a) w he re i n the C oor d in a te Be n ch has he l d th at in a b se nce of sp e c i fic ma te r i a l o n re cord , the p owe r s unde r se cti on 2 63 hav e bee n 31 ITA Nos.106 to 109/Chd/2021 A.Y.2016-17 wr on gl y e xe r c ised b y t he ld C I T a n d onl y in ca se s w he re the ld C I T i s a b l e t o b r in g on re cor d s pe ci fi c ma te r i a l w hi ch h a s not be e n ve ri f ie d by the As se ssi n g of fi ce r , the or de r so pa s se d b y the Asse s si ng off i ce r ca n be he ld to be e r r one ou s on an in co rre ct a s su mpt ion of fa c ts and the r ele va n t fi nd i ng s re a d a s u nd e r :
" 3 4 . T ho u gh l e ar n e d C IT h as r e f e rr e d to a f ig u re o f R s . 1 , 9 4 , 6 6 , 94 4 , bu t h e h as n o t q u an ti f i e d th a t am o u n t v i s - a- v i s th e v o uc he r s o r o th e r h e ad f r o m wh e r e s uc h f i gu r e h as b e e n d r a wn . M o re o v e r , i n th e o r de r p as s e d b y h i m he h as no t s p ec if i e d th o s e i te m s an d h e h as ju s t as k e d th e A O to m ak e f re s h as s e ss me n t wi th o u t s p e c if y i n g th a t wh i c h v o u c he r s we r e n o t v e r if i e d by th e A O . T he r ef o re , we ar e o f th e o p i n i o n th a t p o we r s u n d e r s . 2 6 3 h av e b e e n wr o n g l y e x e rc i s e d b y th e C IT as h e h as n o t b r o u g h t s p ec if ic m a te r i al o n r e c o r d to s h o w th a t h o w t h e A O d i d n o t v e r if y th e r a w m ate r i al p u r ch as e d to th e tu n e of R s . 1 , 9 4, 6 6 , 9 4 4 .
3 7 . In th e c as e o f M al ab ar In d u s tr i al C o . L td . v . C IT [2000] 2 4 3 IT R 8 3 ( SC ) , wh i l e i n te r p r e ti n g s . 26 3 , i t h as b e e n h e l d b y H o n ' b l e S u p re me C o u r t th a t f or e xe rc i s i n g p o we r u n d e r s. 2 6 3 i t i s e s s en ti al th a t th e as s e s s me n t o r d e r wh i c h i s p as s e d b y th e A O an d wh i c h i s s u b j e c t to s . 2 6 3 s h o ul d b e e r ro n eo u s as we l l as p r e ju d i c i al to th e i n te r e s t o f R e ve n ue. I t was o b s e r v e d th at i n o r d e r to i n v o k e s . 2 6 3, th e C I T h as to b e s ati s f i e d o n two c o n di ti o n s : ( i ) th e o r d e r of th e A O 32 ITA Nos.106 to 109/Chd/2021 A.Y.2016-17 s o ug h t to b e r e v i se d i s er ro n eo u s an d ( i i ) i t i s p r e ju d i c i al to th e i n te r e s t o f th e R e v e n u e . If o ne of th e m i s ab s e n t-- i f th e o r de r o f th e IT O i s n o t e r r o n e o u s b u t i s p r e ju d i c i al t o th e i n te r e s t of R ev enu e or if it is not e r r o n e o us , but is p r e ju d i c i al to th e i n te r e s t o f R ev e nu e -- re c o ur s e c an n o t b e t ak e n to s . 2 6 3 (1 ) o f th e A c t. I t w as o b s e r v e d th at th e p r o v i s i o n s o f s . 2 6 3 c an n o t b e i n v o k e d to c o rr ec t e ac h an d e v e r y typ e of m i st ak e o r e rr o r c o m m i tte d b y th e A O . I t i s o n l y wh e n an o r d e r i s e r r on e o u s , s. 2 6 3 wi l l b e a ttr ac te d . D e f in i n g th e wo r d ' e r r o n e o us ' , i t w as o b s e rv ed th a t an i n c o r r e c t as s u m p ti o n of f ac ts o r an i n c o r r e c t ap p l ic a ti o n o f law wi l l s ati s f y th e r e q u i re m e n t of th e o r de r being e r ro n eo u s. T h e r e fo r e , in o r de r to hold an order to be e r ro n eo u s, it must be p as s e d e i th e r on an incorrect as s u m p ti o n o f f ac ts o r th e r e m u s t b e an i n c o r r e c t ap p l i c a ti o n o f l aw.
3 8 . N o w, we e x am i n e th e f ac ts of pr e s en t c as e to d e te r m i n e th a t wh e th e r o n th e i s s u e s, o n wh i c h l e ar n e d C IT h as i n v o k e d p o we r u n d e r s . 2 6 3, th e A O d i d n o t m ak e an y ad d i ti o n e i th e r o n an i n c o rr e c t as s u m p ti o n o f f ac ts o r o n an i n c o r r e c t ap p l i c a ti o n o f l a w. I n c o rr e c t as s u m p ti o n o f f ac ts c an b e s ai d to h av e e x i s te d o n l y i f l e ar n e d C IT i s ab l e to b r i n g o n r ec o rd a n y m ate r i a l to s h o w th a t ap ar t f r o m th e v o uc he rs , wh i c h we r e i d e n ti f i e d an d s ta te d in th e as s e s s m e n t o r d e r , th e r e we r e c e r tai n o th e r v o uc he rs wh i c h we r e u n v e r if i ab l e . L e ar n e d C IT h as n o t b r o u g h t an y s uc h 33 ITA Nos.106 to 109/Chd/2021 A.Y.2016-17 m ate r i al o n r ec o r d. In th e ab s e n c e o f an y s u c h m a te r i al , i t i s v e r y d if f ic u l t to h o l d th a t th e as s e ss m e n t o r d er p as s ed b y th e A O was e r r o neo u s . W h at h as b e e n d o n e b y l e ar n e d C IT is th a t he h as simply c an c e l l e d th e as s e s s m e n t o rd e r p as s e d by th e AO to be m ad e af re s h af te r giving th e as s e s s ee a r e as o n ab l e o p p or tu n i ty o f he ar i n g . T h e re f or e , i t i s n o t a c as e w h e r e as s e s s m e n t o r de r is b as e d o n an i n c o r r e c t as s u m p ti o n o f f ac ts . It i s n o t e v e n th e c as e o f l e ar n e d C IT th a t a s s e s s m e n t o r d er is b as e d o n an i n c o r re c t ap p li c ati o n o f l a w. T h u s , o n b o th ac c o u n ts , th e o r d er of A O c an n o t b e s ai d to b e er r o n eo u s. T h e A O, i n th e as s e s s m e n t o r de r , h as i d e n ti f ie d th e v o uc h er s wh i c h could no t be s u b s tan ti a te d b y th e as s e s s e e an d th e d e tai l s o f th o s e v o uc he rs ar e m e nti o n e d i n th e as s e s s m e n t o r d e r i ts e lf o n th e b as i s of wh i c h th e ad d i ti o n s h av e b e e n m ad e b y th e A O. If l e ar n e d C IT w a s of th e o p i n i o n t h at th e i d e n ti f ic a ti o n b y th e A O o f th e v o uc h e r s wh i c h c o u l d n o t b e s u b s tan ti a t e d b y th e as s e s s e e wa s in co r re c t, th e n only th e c as e of th e as s e s s ee c o u l d f a l l u n d e r th e f i rs t f ac to r i . e . , i n c o r re c t as s u m p ti o n o f f ac ts . In th a t c as e l e ar n e d C IT w as r e q u i r e d to p i n p o i n t th e v o uc he r s wh i c h we r e n o t i d e n tif i e d b y t h e A O an d wh i c h , ac c o rd i n g to th e C IT , we r e u n v er if i ab l e . T h i s h av i n g n o t b e e n d o n e b y l e ar n e d C IT , i t c an n o t b e s a i d th a t th e r e we r e c e r tai n u n s u b s tan ti a te d v o uc h e r s wh i c h we r e n o t i d e n ti f i e d b y th e A O as th e r e i s n o m a te r i al o n r ec o r d to s u gg e s t th a t an y s u c h v o u c h e r s o th e r th an m e n ti o n e d i n th e 34 ITA Nos.106 to 109/Chd/2021 A.Y.2016-17 as s e s s m e n t o r de r we r e i d e n ti f i e d b y th e C IT to h o l d th a t th e A O h as wo r k e d o u t th e ad d i ti o n o n th e b as i s o f i nc o r re c t as s u m p ti o n o f f ac ts . T h e c as e o f th e C IT m e r e l y i s th a t th e AO did not verif y ce r tai n vouchers or th e v o uc he r s m ai n ta i n e d by th e as s e s s e e we r e s ti l l u n s u b s tan ti a te d wh i c h we r e o th e r th an th e v o uc h e rs s p ec if ie d b y th e A O . T h u s , th e o b s er v at i o n s o f l e ar n e d C IT th a t c e r tai n v o u c he r s we r e s ti l l u n v e r i f i ab l e ap p e ar s to be b as e d on mere as s u m p ti o n an d m e re as s u m p ti o n i s n o t s uf f ic i e n t t o ho l d th a t as s e s s m e n t o r d e r i s e r r o ne o u s. T h e r e f ore , we h o ld th a t i n th e p r e s e n t c as e th e r e i s n o i nc o rr ec t as s u m p ti o n o f f ac ts an d th e r e i s n o i n c or r ec t ap p l i c ati o n of l a w s o as to m ak e th e as s e ss m e n t o rd e r p as s e d b y th e A O as e r r o n e o u s . "
28 . I n l ig ht of a for e s a id d i sc us sion a nd i n the e n ti r e ty of fa ct s a nd c i rc u m st a nc e s of th e case , we fi nd tha t th e re i s no ju sti fi a b l e a n d le g a l b a si s f or exe r ci se o f j ur i sdi cti on u /s 26 3 by th e l d P C I T a nd th e or d e r so p a sse d is h e re b y se t- a si de a n d the ord e r of the A sse ss in g o ff ice r pa s se d u /s 14 3 ( 3) is s ust a in e d .
29 . I n the re su lt, the a p pe a l o f the a s se sse e is a l l ow e d . ITA N o.1 07 -1 09 / Ch d/2 02 1 30 . In the se th ree a p p e a l s, b oth the p a r tie s fa i rl y sub mi tte d th a t th e fa c ts a nd ci rcums ta n ce s of th e se ca se s a re e xa c tly ide nti ca l a n d s imi l a r c on te n tio ns a s r ai se d in 35 ITA Nos.106 to 109/Chd/2021 A.Y.2016-17 I TA N o.1 0 6 /C hd /2 0 2 1 ma y b e con si d e re d . The r e fo re , our fi nd i ng s a nd di re c tio ns c onta i ned i n I TA N o.1 0 6 /C hd /2 0 2 1 sha ll a p pl y mu ta ti s mu tan d i s i n t h e se ca se s a n d the a ppe a l of th e re spe c tive a ss e ssee s a re a l low e d .
I n the re s ul t, a ll the a ppe a ls f i le d b y t he re spec ti ve a sse sse e s a re a l lo we d i n li gh t of af or e sa i d d i re ct ions.
O r de r p r o n o u n ce d o n 0 9 . 0 3 . 2 0 2 2 .
Sd/- Sd/-
(DIVA SINGH) (VIKRAM SINGH YADAV)
याय क सद य/Judicial Member लेखा सद य/Accountant
Member
Dated: 09.03.2022
*रती*
आदे श क % त&ल'प अ*े'षत/ Copy of the order forwarded to :
1. अपीलाथ+/ The Appellant
2. %,यथ+/ The Respondent
3. आयकर आयु-त/ CIT
4. आयकर आयु-त (अपील)/ The CIT(A)
5. 'वभागीय % त न0ध, आयकर अपील य आ0धकरण, च2डीगढ़/ DR, ITAT, CHANDIGARH
6. गाड फाईल/ Guard File आदे शानस ु ार/ By order, सहायक पंजीकार/ Assistant Registrar 36 ITA Nos.106 to 109/Chd/2021 A.Y.2016-17