Assessee's appeal allowed, order under section 263 quashed. AO's inquiry reasonable. Revisionary order invalid. The appeal filed by the assessee was allowed, and the order passed under section 263 of the Act was quashed. The court held that the Assessing Officer had ...
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Assessee's appeal allowed, order under section 263 quashed. AO's inquiry reasonable. Revisionary order invalid.
The appeal filed by the assessee was allowed, and the order passed under section 263 of the Act was quashed. The court held that the Assessing Officer had conducted a reasonable enquiry during the assessment proceedings, and the decision taken was considered plausible and not contrary to the facts on record. It was determined that the revisionary order was not valid, and the assessee's argument against the jurisdiction exercised under section 263 of the Act was upheld.
Issues: The only issue raised by the assessee is against the invalid jurisdiction exercised u/s 263 of the Act by Ld. Pr. CIT thereby passing a revisionary order which is invalid and bad in the eyes of law.
Comprehensive Details: The assessee filed its return of income declaring total income. The case was selected for limited scrutiny due to cash deposited during demonetization. The Assessing Officer (AO) partly accepted the plea of the assessee and framed the assessment. The AO added a specific amount to the income of the assessee, which was not challenged before Ld. CIT(A). Ld. Pr. CIT observed that the assessment was completed without proper enquiries and penalty proceedings. The Pr. CIT issued a notice to the assessee and revised the assessment, directing the AO to frame it afresh after making necessary enquiries.
The argument presented by Ld. A/R was that the AO had already examined the issue in detail during the assessment proceedings. The jurisdiction under section 263 of the Act was questioned, stating that the AO had called for explanations and the assessee had provided supporting evidence. Ld. A/R contended that the revisionary order was not valid, citing relevant case laws to support the argument.
On the other hand, Ld. D/R supported the order passed by Ld. Pr. CIT, emphasizing the lack of proper enquiry by the AO and the correctness of the revisionary order. The D/R stated that the revision did not cause any loss or prejudice to the assessee.
After hearing both sides, it was observed that the AO had conducted a reasonable enquiry during the assessment proceedings. The view taken by the AO was considered plausible and not contrary to the facts on record. Citing relevant case laws, it was concluded that the AO's decision was not erroneous. Therefore, the order passed under section 263 of the Act was quashed, and the appeal of the assessee was allowed.
In conclusion, the appeal filed by the assessee was allowed, and the order passed under section 263 of the Act was quashed.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
TaxTMI 
