2024 (12) TMI 865

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....nt-assessee against order dated 27.03.2022 passed by the Principal Commissioner of Income Tax under Section 263 of the Act pertaining to Assessment Year ('AY') 2017-18 has been allowed. 2. The respondent-assessee is engaged in the business of trading in shares and securities. It filed its return for AY 2017-18 on 18.09.2017 declaring income of Rs. 1,83,99,800/-. The case was selected for scrutiny through Computer-assisted Scrutiny Selection (CASS) inter alia on the ground of excess claim of exemption of dividend income and large increase in unsecured loans during the year. During course of assessment proceedings, the Assessing Officer ('AO') issued notice under Section 142 (1) of the Act from time to time along with detaile....

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....ssee approached the Tribunal. 6. The Tribunal after hearing the parties and going through the record, came to the conclusion that the AO has neither assumed facts incorrectly nor there is any incorrect application of law. On the contrary, he had applied his mind and his order was not erroneous and, therefore, there was no question of the order being prejudicial to the interest of revenue and consequently allowed the appeal and quashed the order impugned as noticed hereinbefore. 7. Learned counsel for the appellant made vehement submissions that the Tribunal was not justified in setting aside the order impugned inasmuch as the PCIT has clearly observed that the assessment order was passed without making inquiries or verification which shou....

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....has rightly been set aside by the Tribunal and that the same does not give rise to any substantial question of law. 9. We have considered the submissions made by counsel for the parties and have perused the material available on record. 10. The PCIT by its order under Section 263 of the Act, after noticing few facts and case laws referred to the provisions of Explanation 2 to Section 263 (1) of the Act and observed that the requisite inquiries and verification which were required to be done by the AO have not been undertaken and based on which he has the jurisdiction under Section 263 of the Act. 11. The Tribunal after thoroughly examining the record noticed that the AO issued six notices under Section 142 (1) of the Act dated 13.09.2019....