2012 (5) TMI 787

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....that this assessment order was a subject matter of the proceedings under section 263. He submitted that the ld. CIT(Appeals) had issued show-cause notice under section 263 dated I.T.A. No. 1128/Kol/2009 Assessment year 1999-2000 11.02.2009, wherein the CIT(Appeals) had asked the assessee to show- cause as to why the assessment order passed under section 143(3) r.w.s. 147 dated 30.06.2006 for the assessment year 1999-2000 was not liable to be set aside as the Assessing Officer had not conducted enquiry adequately which had led the assessment order to be erroneous and prejudicial to the interest of revenue. It was the submission that the assessee had submitted written note dated 23.03.2009 by mentioning that the enquiry had been conducted by ....

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....on 263 of the Act. He relied upon the decision of the Hon'ble Delhi High Court in the case of Gee Vee Enterprises -vs.- Addl. CIT rep orted in 99 ITR 375, wherein in has been held that failure to make enquiries would make the order erroneous. 4. We have considered the rival submissions and perused the material available on record. On perusal of the assessment order passed under section 143(3) rws. 147, it is seen that the Assessing Officer has asked for certain details. However, the assessment order is a two pages order. On perusal of the notice dated 01.05.2006 under section 143(2) of the Act shows that the Assessing Officer had asked the assessee to submit various details. On perusal of the letter of the assessee dated 10.05.2006 to ....

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.... inquiry. There is a difference between no enquiry and inadequate enquiry. In the case of no enquiry the ld. CIT would be right in involving his powers u/s. 263. But to say an enquiry is inadequate enquiry the ld. CIT would have to show that the enquiry and the opinion formed on the basis of such enquiry is fallacious. This has not been done by the ld. CIT. Under these circumstances, we are of the considered view that the inquiries done by the Assessing Officer cannot be said to be erroneous or specifically inadequate. The decision relied upon by the ld. D.R. in the case of Gee Vee Enterprises, as passed by the Hon'ble Delhi High Court, categorically held that "the order becomes erroneous because such an inquiry has not been made and no....

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....passive in the face of a return which is apparently in order but calls for further enquiry. In such a case, revision proceedings can indeed be initiated and there seems to be no serious controversy in this respect. The fine point, however, one must bear in mind is the distinction between adequate enquiries not having been conducted and the result of such enquiries not having been dealt with by way of a speaking order or not having resulted in the conclusion that could be, in the wisdom of a person other than the Assessing Officer, more appropriate. Here is a case in which sufficient enquiries were conducted. As learned brother has rightly noted, the Assessing Officer called for specific details, confirmations and even ITA No. 1128/Kol/2009 ....