GDP AGRO & FOOD PRODUCTS PVT LTD,GWALIOR V. P CIT , GWALIOR

ITA 675/AGR/2018

AI Insights

The case involves GDP Agro & Food Products Pvt. Ltd., which appealed against the revisionary order passed by the Pr. CIT, Gwalior under section 263 of the Income Tax Act for the Assessment Year 2014-15. The original assessment was conducted under section 143(3) by the AO, who disallowed certain sales promotion expenses but accepted the assessee's explanations regarding other discrepancies noted during a survey under section 133A. The Pr. CIT later revised this assessment, citing that the AO had not considered certain incriminating materials found during the survey. The Tribunal examined the submissions and found that the AO had indeed considered these materials and had made a plausible decision based on the explanations provided by the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126467 (ITAT-AGRA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Other Referred Cases: Malabar Industrial Co. Ltd. vs. CIT, CIT vs. Max India Ltd., Grasim Industries Ltd. vs. CIT
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARUN KUMAR YADAV LD.
• Assessee Lawyers: DEEPENDRA MOHAN; LD
• Keywords: Loose papers; Revision of order; Principal; Satisfaction; Judgment; HRA; Commissioner; Commissioner of Income Tax; AMP; Purchases; Transactions; Restored; Roving enquiries; Loose Paper; Dumb Document; Explanation
• Section: 143(3); 263; 133A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “DB” BENCH, AGRA BEFORE HON’BLE SHRI SATBEER SINGH GODARA, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपीलसं./ ITA No. 675/Agr/2018 (िनधा \u000fरणवष\u000f / Assessment Year:2014-15) GDP Agro & Food Products Pvt. Ltd. Near Jain Temple, Gudi Guda ka Naka, Bajriya, Lashkar, Gwalior (MP) बनाम/ Vs. Pr. CIT Gwalior \u0002थायीलेखासं./जीआइआरसं./PAN/GIR No. AAECG-1517-G (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ कीओरसे/ Appellant by : Sh. Deependra Mohan, CA – Ld. AR थ कीओरसे/Respondent by : Dr. Arun Kumar Yadav – Ld. CIT-DR सुनवाईकीतारीख/Date of Hearing : 19-02-2025 घोषणाकीतारीख /Date of Pronouncement : 22.04.2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. By way of this appeal, the assessee assails invocation of revisionary jurisdiction u/s 263 by Ld. Pr. Commissioner of Income Tax. Gwalior (Pr.CIT) for Assessment Year (AY) 2014-15 vide impugned order dated 17-05-2018 in the matter of an assessment framed by Ld. AO u/s 143(3) of the Act on 28-07-2016. Having heard rival submissions and upon perusal of case records, our adjudication would be as under. 2. Upon perusal of case records, it could be seen that the assessee’s case was subjected to scrutiny. During the course of assessment proceedings, the assessee was asked to furnish various details which were furnished by the assessee. Partially accepting the 2 same, Ld. AO disallowed sales promotion expenses of Rs.2.35 Lacs and framed the assessment. 3. Subsequently, Ld. Pr. CIT, upon perusal of case records, alleged that the assessee was subjected to survey u/s 133A on 15- 01-2015 wherein certain incriminating material was found which was not considered by Ld. AO. Accordingly, the assessee was show- caused. The assessee refuted all these allegations and stated that due enquiries were made by Ld. AO. However, rejecting the same, Ld. Pr. CIT held the cash transactions and unaccounted purchases were not considered by Ld.AO. Accordingly, the assessment order was held to be erroneous and prejudicial to the interest of the revenue and Ld. AO was directed to pass fresh order. Aggrieved, the assessee is in further appeal before us. 4. Upon perusal of assessee’s reply dated 14-06-2016 as given to Ld. AO during the course of assessment proceedings, it could be seen that the assessee explained the contents of Annexure B-6, B-5, B-12 & B-13 which were found during the survey proceedings. It was explained that these were offer for purchases only. From the reply, it is quite discernible that the fact of survey proceedings was duly been noted by Ld. AO. The same was discussed and specific queries were raised by Ld. AO on the same. The same fact was brought to the notice of Ld. Pr. CIT in reply to show-cause notice also vide reply dated 16-05-2018. In this reply, the assessee explained that the sales on loose papers were projected sale or sales effected upto AY 2013-14. The papers merely contained jotting / notings and rough 3 calculations. The loose papers were unsigned and the same were in the nature of dumb documents only. However, none of these arguments have been met by Ld. Pr. CIT in the impugned order. Without specific finding as to how the order is erroneous and prejudicial to the interest of revenue, the impugned revision could not be sustained in law. It is another aspect that the fact of survey was duly taken note of by Ld. AO and after having satisfied with the assessee’s explanation, Ld. AO chose to accept the explanation of the assessee. The Ld. AO looked into the submissions of the assessee and arrived at a satisfaction. In the light of all these facts, it could be concluded that whatever enquiries were required, the same were made by Ld. AO during the course of assessment proceedings itself. After due consideration of assessee’s submissions, Ld. AO accepted the claim of the assessee with due application of mind. In our opinion, the allegations in the proposed revision are not well founded. The proposed revision is nothing but to make fishing or roving enquiries which is impermissible. It is a case of acceptance of one of the plausible views which was more on facts and the said view could not be said to be opposed to any law or statutory provisions. The Ld. AO, in our opinion, had taken one of the plausible views in the matter and therefore, Ld. Pr. CIT could not be said to be justified in substituting the view of Ld. AO with that of his own view. Simply because some further verification was required or simply because the verification was not done in a particular manner, the same could not justify revision of the order unless it was shown that the view of Ld. 4 AO was erroneous or opposed to any law. Further, no findings have been rendered by Ld. Pr. CIT as to how the order was erroneous. 5. The Hon’ble Supreme Court in Malabar Industrial Co. Ltd. vs. CIT (supra) has held that the phrase 'prejudicial to the interests of the revenue has to be read in conjunction with an erroneous order passed by the Assessing Officer. Every loss of revenue as consequence of an order of the Assessing Officer cannot be treated as prejudicial to the interest of the revenue. For example, when an Income-tax Officer adopted one of the courses permissible in law and it has resulted in loss of revenue; or where two views are possible and the Income-tax Officer has taken one view with which the Commissioner does not agree, it cannot be treated as an erroneous order prejudicial to the interest of the revenue, unless the view taken by the Income-tax Officer is unsustainable in law. The said principal has been reiterated by Hon’ble Court in its subsequent judgment titled as CIT V/s Max India Ltd. (295 ITR 282). Similar principal has been followed in Grasim Industries Ltd. V/s CIT (321 ITR 92). The ratio ofall these decisions is that where two views are possible and AO has preferred one view against another view, order could not be said to be erroneous or prejudicial to the interest of the revenue. 6. Therefore, on the given facts, the impugned revision of assessment order could not be sustained in law. We order so. The assessment as framed by Ld. AO stand restored back. 5 7. The appeal stand allowed in terms of our above order. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963. Sd/- Sd/- (SATBEER SINGH GODARA) (MANOJ KUMAR AGGARWAL) 4ा ियक सद5 /JUDICIAL MEMBERलेखा सद5 / ACCOUNTANT MEMBER Dated: 22.04.2025 आदेशकी7ितिलिपअ9ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. थ /Respondent 3. आयकरआयु3/CIT 4. िवभागीय ितिनिध/DR 5. गाड9फाईल/GF ASSISTANT REGISTRAR ITAT AGRA "