2022 (8) TMI 804

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....SA No.02/DDN/2021 for the assessment year 2016-17. 2. The Tribunal has rejected the said appeal preferred by the assessee / appellant under Section 263 of the Income Tax Act wherein the appellant had assailed the order passed by the learned PCIT, Dehradun relating to the assessment year 2016-17. 3. The assessee, who is an individual, filed his income tax return on 31.12.2016 showing total income of Rs.10,02,000/-. The assessee has shown income from running hostel. The assesee's case was selected for scrutiny to examine the issue whether invested income relating to properties were duly disclosed. Accordingly, a notice under Section 143(2) of the I.T. Act was served on the assessee through e-filing portal on 18.09.2017. The AO also issu....

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....ly, the PCIT issued show-cause notice to the assessee to explain as to why the order passed by the AO should not be revised under Section 263 of the I.T. Act, since the order appears to be erroneous and prejudicial to the interest of the revenue. The PCIT considered the explanation furnished by the assessee but rejected the same. The assessment order passed by the AO was cancelled with direction to pass a fresh order after affording proper opportunity of being heard to the assessee. 8. The reasons adopted by the PCIT have been 3 extracted in the impugned order, which reads as follows:- "4. The assessee's submission has been carefully examined. It is noticed that the assessee has not provided any justification against violati....

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....m the impugned order passed by the PCIT reads as follows:- "7. We have considered the rival arguments made by both the sides, perused the orders of the AO and Id. PCIT and the paper book filed on behalf of the assessee. We have also considered the various decisions cited before us. We find that the case of the assessee was selected under limited scrutiny to examine the issue as to whether investments and income relating to properties are duly disclosed. A perusal of the reply given by the assessee during the course of assessment proceedings show that the assessee has purchased two properties, the details of which are as under: Date Purchase Price (Rs.) 24.06.2015 4,73,00,000/- 24.06.2015 3,50,00,000/- 8. ....

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.... the assessment under the provisions of Section 263 of the I.T. Act with a direction to the AO to pass the fresh Assessment Order after due verification and after affording proper opportunity of being heard to the assessee. Accordingly, the grounds raised by the assessee are dismissed." 11. The submission of the learned counsel for the appellant / assessee is that the Income Tax Return filed by the aforesaid society was accepted and, therefore, the order passed by the PCIT revising the assessment under Section 263 was incongruous. He submits that it was the case of the appellant/ assessee that the monies for purchase of the land amounting to Rs.8,64,15,000/- was sourced from the said society, however, the aspect of violation of Section 1....