Choksi Ranchhodlal Kishordas Vs PCIT (ITAT Ahmedabad)
Sec 263 Quashed – AO Conducted Detailed Enquiry on Renuka Mata Society Credits – PCIT Cannot Revise on Mere Suspicion – ITAT Ahmedabad
PCIT invoked revision u/s 263 alleging that the AO failed to properly examine credits of ₹2.36 Cr received through Shri Renuka Mata Multi State Urban Co-operative Credit Society, suspected to be an accommodation entry provider.
ITAT noted that during reassessment proceedings the assessee had furnished detailed evidence explaining that receipts were sale proceeds from Parishram Bullion, supported by invoices, bank statements, confirmations, VAT audit records and audited books. The AO examined these documents and accepted the explanation; therefore, it was not a case of lack of enquiry.
The Tribunal held that PCIT neither pointed out defects in the evidences nor conducted independent enquiry before invoking revision. Mere reliance on general investigation information without showing how assessee’s case fitted the alleged modus operandi cannot render the assessment erroneous. Since a plausible view was already taken by the AO after enquiry, revision u/s 263 was held invalid and the PCIT order was set aside. Appeal allowed.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
The present appeal has been filed by the assessee against the order of the Principal Commissioner of Income Tax, PCIT, Ahmedabad-1 (hereinafter referred to as “PCIT”), dated 21.03.2024 invoking his revisional jurisdiction under Section 263 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) and relates to Assessment Year (A.Y.) 2013-14.
