TaxTMI 
TaxTMI 
2019 (6) TMI 816
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....s proposed the following substantial questions of law: "Whether on the facts and in the circumstances of the case and in law, the Hon'ble ITAT is right in cancelling the order u/s. 263 of the IT Act passed by this office when the assessment order passed by the Assessing Officer was erroneous and prejudicial to the interest of Revenue, which has been categorically analyzed and established in the order passed u/s 263 of the I.T. Act?" 3 We take notice of the fact that the issue before the Tribunal was whether the Commissioner of Income Tax erred in passing the order passed under Section 263 of the Act, 1961 treating the order passed under Section 143(3) by the Assessing Officer as erroneous on the premise that the assessee was not el....
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....orrect and baseless as we have noted above the AO has made enquiry on this issue. Further, in a case where the AO has made enquiry on the issue end ld. CIT is of the view that the enquiry is not sufficient then he is required to make necessary enquiry in the order passed u/s. 263 of the Act and without making such enquiry it is not allowed and permissible for the ld. CIT to restore the issue to the file of the A.O for a fresh examination and adjudication under provision of S. 263 of the Act. 14. As per reliance on the decision of Hon'ble Supreme Court in the case of Malabar Industrial Co. Ltd the CIT can invoke S. 263 if the order of AO erroneous and it is also prejudicial to interests of the Revenue both conditions must coexist; if due ....
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....ere is no discussion in the assessment order by the AO showing that he has made enquiry on the issue of depreciation on car we are of view that we are satisfied that the AO issued show cause and the assessee replied the same along with due details and evidences which was accepted by the AO. As per decision of ITAT, Mumbai in the case of Reliance Gas Transportation lnfrastructure Ltd Vs. CIT [2014] 50 taxmann.com 2008 (MumTrib.) as retied by the ld. AR writing an assessment order in detail may be a legal requirement but order not fulfilling this requirement cannot be said to be erroneous and prejudicial to interest of Revenue. 16. In the present case, the ld. CIT after making baseless and incorrect allegation of no enquiry on the issue of....
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.... to revise order of assessing authority u/s. 263 of the Act. 18 The next question posed for our adjudication is that whether on merits the order of AO in allowing claim of depreciation @50% was a plausible and correct view. In this connection, admittedly and undisputedly Volkswagen Car was purchased during the year by the assessee and the same was registered as Light Motor Vehicle. As per preposition rendered by ITAT Pune Bench 'A' in the case of Gera Developments Pvt. Ltd vs. JCIT [2015] 61 taxmann.com 88. as strongly relied by the ld. AR, while vehicle in respect of which assessee claimed depreciation was a light motor vehicle as specified in table in Appendix - I of Rule 5 assessee would be entitled to enhance depreciation at ....