Poonam Bhotika Vs Income Tax Officer (ITAT Kolkata)
Provision of Section 263 of the Act does not give any power whatsoever to the Ld. CIT to remit the issue to the file of AO without finding that the order of AO is erroneous in so far as prejudicial to the interest of revenue. Hon’ble Delhi High Court in the case of CIT vs. Sunbeam Auto Limited reported in 332 ITR 167 (Del) held as under:-
“One has to keep in mind the distinction between ‘lack of inquiry’ and ‘inadequate inquiry’. If there was any inquiry, even inadequate, that would not, by itself, give occasion to the Commissioner to pass orders under section 263 merely because he has different opinion in the matter. It is only in cases of ‘lack of inquiry’ that such a course of action would be open.”
As there is no doubt that the necessary enquiry, was conducted by the AO and all the relevant documents were available on record as evident from the order of AO as well as Ld. Pr. CIT, we are of the view that there is no error in the order passed by AO and accordingly revisionary proceedings initiated by Ld. PR. CIT u/s. 263 of the Act is not sustainable.
