TaxTMI 
TaxTMI 
2026 (7) TMI 352
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.... appeal before the Tribunal raising the following grounds of appeal: "1. For that the Learned Principal Commissioner of Income Tax was not justified in holding that assessment order as erroneous and prejudicial to the interest of revenue. The conditions precedent to the invocations of the provisions of Section 263 of the Act were absent in this case hence the said order u/s 263 of the Act be quashed. 2. For that the Learned Principal Commissioner of Income Tax erred in holding that the assessment order was as erroneous and prejudicial to the interest of revenue, is without application of mind. Such finding being perverse be reversed and the order u/s 263 of the Act be quashed. 3. For that the Learned Principal Com....
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....e. 8. The Learned Principal Commissioner of Income Tax failed to appreciate that, where two views are possible and the Assessing Officer, after conduct of due enquiry, has taken one view with which the Pr. CIT does not agree, the assessment order cannot be treated as erroneous and prejudicial to the interest of the revenue. 9. Assuming without admitting that the present case was a case of inadequate enquiry, the Learned Principal Commissioner of Income Tax failed to appreciate that the power of revision envisaged under section 263 of the Act and the Explanation 2 thereto can be exercised only where no enquiry as required under the law is done and that it is not open to invoke the said provisions in cases of inadequate enqu....
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....r dated 11.03.2025, set aside the assessment order dated 31.12.2022 and directed the Ld. AO to make a fresh assessment after conducting necessary verification and inquiry into the specified issues. 4. Aggrieved with the order of the Ld. PCIT, the assessee has filed the appeal before the Tribunal. 5. Rival contentions were heard and the submissions made have been examined. 6. In the course of the hearing before us, it was submitted by the Ld. AR the there are three issues. The copy of the order giving effect to the directions of the Ld. PCIT was not filed before us. Our attention was drawn to the notice of hearing at page 1 of the paper book. The first issue is related to rental income which the assessee had been offering as busines....
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.... the paper book being the submission before the Ld. PCIT in this regard. It was stated that The Ld. AO had issued notice u/s 133(6) of the Act and was satisfied, and had passed the assessment order and the proceeding u/s 263 of the Act should have been dropped, and so was submitted by the Ld. AR before us. Our attention was also drawn to page 191 being the notice issued to the creditors and page 193 of the paper book, being the response from the creditor and to page 120 of the paper book, being the profit and loss account. It was stated that there was no vacancy in the completed building, which had been acquired and had been rented out as per the memorandum of the company. The Ld. AR also filed a bunch of judicial pronouncements as under wi....
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.... where the Assessing Officer undertakes a superficial and random investigation that would justify a remit and in this case the Ld. PCIT has recorded such a lapse on the part of the Assessing Officer to establish both the error and the prejudice caused to the revenue as regards the unsecured loans as discussed in the subsequent paragraph. The Ld. DR relied upon the order of the Ld. PCIT and requested that the same may be confirmed as there was failure to conduct the inquiries by the Ld. AO. 7. We have considered the submissions made, gone through the facts of the case and perused the record and the order of the Ld. PCIT. Ground No. 4 is allowed as the assessee had only rental income and had been consistently showing the same under the hea....