https://www.taxtmi.com/caselaws?id=392577 The High Court upheld the Tribunal's decision to cancel the Principal Commissioner of Income Tax's order under Section 263 of the Income Tax Act. The Court found that the Assessing Officer had conducted thorough inquiries into the unsecured loans, accepted their genuineness, and that the PCIT's invocation of Explanation 2 without proper confrontation of the assessee was inappropriate. The Court emphasized that revisional powers under Section 263 cannot be used to merely direct further inquiry unless the AO's decision is wholly unsustainable in law. Consequently, the High Court dismissed the Revenue's appeal, affirming that the AO's assessment was not erroneous or prejudicial to the Revenue's interest. en-us Mon, 03 Feb 2020 00:00:00 +0530 Wed, 01 Sep 2021 17:54:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=392577 The High Court upheld the Tribunal's decision to cancel the Principal Commissioner of Income Tax's order under Section 263 of the Income Tax Act. The Court found that the Assessing Officer had conducted thorough inquiries into the unsecured loans, accepted their genuineness, and that the PCIT's invocation of Explanation 2 without proper confrontation of the assessee was inappropriate. The Court emphasized that revisional powers under Section 263 cannot be used to merely direct further inquiry unless the AO's decision is wholly unsustainable in law. Consequently, the High Court dismissed the Revenue's appeal, affirming that the AO's assessment was not erroneous or prejudicial to the Revenue's interest. Case-Laws Income Tax Mon, 03 Feb 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=392577