2011 (5) TMI 1038 - AT - Income Tax

Commissioner's order under section 263 upheld for inadequate inquiries, directing reassessment.

Ms Nehal N. Gandhi, Versus Income Tax Officer 16 (2) (2), Mumbai

The appeal against the Commissioner of Income Tax's order under section 263 was dismissed. The Commissioner set aside the assessment order, directing the ... - Issues involved: Appeal against order u/s 263 of the Income Tax Act, 1961.Details of the Judgment:Issue 1: CIT's order under section 263 challenged by the assessee.The CIT set aside the assessment order and directed the Assessing Officer to redo the assessment after further verification. The CIT opined that more enquiries were necessary to reach conclusive findings on various issues raised.Issue 2: Jurisdiction of CIT to revise assessment under section 263.The CIT issued a notice citing seven items where inadequate enquiries were made by the Assessing Officer. These items included discrepancies in property ownership, rental income, treatment of advance remuneration, loans, and jewelry sale. The CIT directed the Assessing Officer to reexamine these issues and give the assessee an opportunity to be heard.Issue 3: Lack of enquiry by the Assessing Officer.The CIT's decision to revise the assessment was based on the premise that certain relevant enquiries were not conducted by the Assessing Officer during the assessment process. The CIT's order was upheld as it was deemed valid due to the lack of proper enquiry by the Assessing Officer.Conclusion:The appeal by the assessee against the CIT's order under section 263 was dismissed, upholding the CIT's decision to revise the assessment. The Assessing Officer was directed to conduct further enquiries and pass a fresh assessment order.