TaxTMI 
TaxTMI 
2021 (11) TMI 677
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....[for short 'the Act'] holding the same erroneous and prejudicial to the interest of the revenue and directed the AO to pass assessment order afresh after conducting proper enquiry. 2. The brief facts emanating from the record and pleadings of the parties are that the assessee filed its return of income for the assessment year under consideration declaring total income of Rs. 3,72,470/-. The case was selected for scrutiny and the AO passed assessment order u/s. 143(3) of the Act and accepted the returned income. Subsequently, the Ld. PCIT set aside the assessment order exercising power u/s. 263 of the Act. 3. The assessee has challenged the impugned order passed by the Ld. PCIT on the following grounds:- 1. That order ....
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....e copy of point-wise reply to the said letters submitted before the AO, which are available at page 31 & 32, 33 & 34, 35 and 36 & 37 of the paper book, to demonstrate that the AO has passed the assessment order after conducting enquiries and accepting explanations of the assessee on each and every point discussed by the Ld. PCIT in order u/s. 263 of the Act. The Ld. counsel further pointed out that the assessee in its reply to the notice u/s. 263 of the Act made detailed written submissions on merits and on the law points. The Ld. counsel placing reliance on the judgement of the Hon'ble Supreme Court in the case of Malabar Industrial Co. Ltd. vs. CIT 243 ITR 83 (SC), judgment of the Hon'ble Calcutta High Court in the case of Dawjee ....
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....ssions of the parties and also perused the material on record including the cases relied upon by the parties. As pointed out by the Ld. counsel, the Ld. PCIT has revised the assessment order passed by the AO basically on the ground of insufficient enquiry. As pointed out by the Ld. counsel, the assessee has furnished the details of various expenses debited to P &L Account along with comparative chart and vouchers in response to the query No. 3, raised by the AO vide notice/letter dated 02.03.2017. Further, the assessee has placed on record the details of loan and advances. Reply of the assessee to query No. 19 raised by the AO reads as under:- "Point No. 19 As regards details of loans and advances, the detail of the same h....
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....to the interest of the revenue. The Hon'ble Court further held that power u/s. 263 cannot be invoked to correct each and every type of mistake committed by the AO. In the case of ITO vs. DG Housing Projects Ltd. 343 ITR 329 (Delhi) the Hon'ble Delhi High Court has held that revisional power u/s. 263 of the Act is normally exercised in the case of no enquiry and not in the case of inadequate enquiry. In the present case the Ld. PCIT has revised the assessment order on the ground of lack of enquiry or inadequate enquiry, which is contrary to the evidence on record. Further the Ld. PCIT has referred and relied Explanation 2 to section 263 of the Act, inserted w.e.f. 01.06.2015 to substantiate his action. The Mumbai Bench of the Tribuna....