TaxTMI 
TaxTMI 
2023 (4) TMI 139
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....ing grounds of appeal: "1. The learned Principal CIT has erred in holding that the assessment order under section 143(3) dt. 27.12.2019 is erroneous in so far as it is prejudicial to the interest of revenue and thereby setting aside the order by invoking the revisionary power under s. 263. The facts as well as the legal position have not been properly appreciated by the learned Principal CIT. 2. That the Principal CIT has failed to appreciate the fact that the earlier assessment, which was framed under s. 143(3) have been completed after due application of mind and by taking into consideration all the facts and, thus, the setting aside of already completed assessment is against the facts and circumstances of the case. 3. That the Pr....
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....y cash deposit as mentioned in clause D, pg. 8 of the impugned order whereby the PCIT has questioned the loan creditors and debtors taken during the year. The ld. AR has further submitted that the ld. AO has considered all the facts and material during the course of assessment proceedings in respect of cash deposit during the demonetization period, an increase in sales in consonance to the profit shown by the assessee. He contended that the ld. PCIT was not justified in holding that it was a case of inadequate enquiry without pointing out or doubting specific issue on entries of the cash deposit in the bank accounts during the demonetization period. Merely, the PCIT has taken a different view based on presumption and assumption to invoke th....
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.... evidences, held that no adverse inference is drawn in its case. 6. It is evident from the assessment order that the AO has verified the transaction regarding the cash deposit during the demonetization period and the cash sales. The allegation of the Pr.CIT that source of cash deposit during the demonetization has remained unverified without reference to the cash sales as examined by the Assessing Officer has no substance and remained uncorroborated with the support of documentary evidence. In our view, merely based on presumption, questioning the cash deposit during the demonetization period and other issues other than the limited scrutiny such as cash creditors are beyond the domain of the jurisdiction of the PCIT u/s 263 of the Act. The....
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....enue or if it is not erroneous but is prejudicial to the Revenue- recourse cannot be had to s. 263(1). There can be no doubt that the provision cannot be invoked to correct each and every type of mistake or error committed by the AO; it is only when an order erroneous that the section will be attracted. An incorrect assumption of facts or an incorrect application of law will satisfy the requirement of the order being erroneous. In the same category fall orders passed without applying the principles of natural justice or without application of mind. The phrase 'prejudicial to the interests of the Revenue' is not an expression of art and is not defined in the Act. Understood in its ordinary meaning it is of wide import and is not conf....