TaxTMI 
TaxTMI 
2023 (9) TMI 1343
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....ment year 2012-13. 2. The following substantial questions of law are raised in this appeal: "(I) Whether on the facts and in the circumstances of the case and in law, the Hon'ble ITAT is justified in quashing the order of the Pr. CIT passed u/s. 263 and holding that decision of the Assessing Officer cannot be treated as erroneous and prejudicial to the interest of revenue even though the AO has not made enquiry which should have been made and the assessment order was deemed to be erroneous in so far as it is prejudicial to the interest of revenue in terms of Explanation 2(a) section 263(1) of the Act? (ii) Whether on the facts and in the circumstances of the case and in law, the Hon'ble ITAT erred in observing that the conditi....
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....k of enquiry or verification?" 3. Facts in brief indicate that the respondent assessee firm M/s. Nya International had filed its return of income for the assessment year 2012-13 on 16.08.2012 declaring total income as NIL. The case thereafter was selected for scrutiny and assessment and an order was passed under Section 143(3) of the Act on 25.03.2015. Information was received from DDIT (Ivn) Unit-7(2) Mumbai that the assessee was maintaining a bank account no. 5500111032480 with ING Vysya Bank having credit entry of Rs. 70,13,43,319/- and the bank account was not disclosed by the assessee in its return of income for the year under consideration. During the year, the assessee firm had claimed exemption under Section 10AA of the Act of Rs.....
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....ing Officer failed to make any additions/disallowance; the Assessing Officer conducted enough inquiries to examine the debit and credit in the bank statement and he also examined the eligibility to claim deductions under Section 10AA of the Act and that is why he disallowed the deduction under section 10AA of the Act. It was not shown by the Principal CIT that the Assessing Officer had failed to examine the issue during the assessment proceedings based on the submissions and verification of the assessment records. 4. The Tribunal held as under: "25. However, we note that assessing officer has examined these two issues raised in reopening of assessment u/s 147 of the Act viz: (i) The credit entry in ING Vysya Bank Account No. 550011103....
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....ted sufficient enquiry to examine the debit and credit in the bank statement and he also examined the eligibility to claim deduction under section 10AA of the Act and that is why he disallowed deduction under section 10AA of the Act. It is pertinent to mention here that there was as such no allegation of 'no enquiry' or 'lack of enquiry' or verification, because the Ld. Pr. C.I.T. himself found all the details/evidences in the assessment record, i.e. well within the A.O.'s possession and what he alleged was about the plausible view taken by the A.O. as against his perception and understanding on the same set of facts and documents. Therefore, the notices issued for examination of the issues during the assessment proceedings and submission a....