2026 (3) TMI 266

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....rounds of appeal which are reproduced as below: " 1. That on the facts and circumstances of the case and in law, the order passed by the Ld. Pr. Commissioner of Income-tax (CIT) Central Circle, under section 263 of the Income-tax Act, 1961 ('the Act') setting aside the assessment framed under section 143(3) by Ld. AO as erroneous and prejudicial to the interest of the Revenue is wholly unreasonable, uncalled for, bad in law and void ab-initio. 2. That in the facts and circumstances of the case, the Ld. Pr. CIT erred in not passing a speaking order against the submissions of the appellant. As such, the order passed u/s 263 is void ab-initio. The action of the Ld. Pr. CIT was wholly unreasonable, uncalled for and bad....

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....C were initiated against the assessee and the case was centralized. Assessee filed return for A.Y. 2021-22 on 15.11.2021 declaring income of Rs. 2,73,580/-. Assessment was completed u/s 143(3) vide order dated 28.12.2022 at returned income. 3.1 Subsequently, Ld. PCIT issued a show-cause notice u/s 263 on the ground that the assessment order was erroneous and prejudicial to the interest of revenue for the following reasons: (i) Source of investment of Rs. 80,50,000/- in purchase of land was required to be explained by the assessee. (ii) Details of bank accounts were not submitted correctly in the return. 3.2 The assessee in its reply explained that closed bank accounts were erroneously mentioned by the counsel while f....

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....ar and the loans and advances taken from related parties (Rs. 50,70,000/-) . Requisite details were filed before the Ld. AO during assessment proceedings. After examining the details, Ld. AO recorded his satisfaction and completed the assessment at returned income as is evident from the assessment order. In view of these facts, the action of Ld. PCIT in holding the order of Ld. AO as erroneous, is without any basis. Further, it is not a case where no enquiry was made by the Ld. AO so as to attract the provisions of the Explanation 2(a) to Section 263 of the Act. 4.1 On the other hand, Ld. DR has strongly relied on the order of the PCIT. He has pointed out that there was mismatch in the bank accounts mentioned in the purchase deed of the ....