2023 (1) TMI 701

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....cularly in the light of reasons stated by him in the show cause notice and in the order passed u/s.263 of the Act and hence the impugned order is bad in law. 2. The learned Principal Commissioner of Income Tax, Rajkot-1, Rajkot erred in setting aside the assessment order framed u/s 143(3) of the Act by holding that the AO has not conducted any inquiries/verification in respect of loans/creditors/unexplained expenditure during the year under consideration and that the AO has failed to apply provisions of Sec.69C r.w.s. 115BBE of the Act. 3. The learned Principal Commissioner of Income Tax, Rajkot-1, Rajkot failed to appreciate that the very impugned issues were duly examined by the assessing officer by way of specific inquiries/notices....

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.... that the assessee preferred first appeal before the National Faceless Appeal Centre (NFAC), Delhi against the disallowance of Rs.29,30,229/- made by the Assessing Officer and since the issue is pending in appeal before the CIT(A), the same cannot be revised under Section 263 of the Act. The Ld. AR further submitted that during the assessment proceedings the assessee has given all the details and submissions related to the unexplained expenditure wherein the Assessing Officer made addition of Rs.37,37,400/-. In fact, during the course of proceedings under Section 143(3) of the Act, notices under Section 142(1) dated 20.09.2019 and 28.11.2019 specifically pertaining to the query related to details of unsecured loans of creditors were issued.....

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....er and is not on assessee's part, therefore, question of disallowance under Section 69C related to undisclosed expenses does not arise. Ld. AR further submitted that the Assessing Officer has rightly not invoked Section 69C of the Act and thus question of applying tax rate as per Section 115BBE could not arise. Thus, the Ld. AR submitted that the PCIT has taken a different view which amounts to change of opinion and is not permissible under Section 263 of the Act. 6. The Ld. DR submitted that the PCIT has rightly exercised revisionary powers as the Assessing Officer has mentioned unexplained expenditure but has not quoted and not calculated the addition as per Section 69C of the Act and in consonance with Section 115BBE of the Act. Thus, t....