Case Law Details
Lalitadevi N. Tibrewala Vs PCIT (ITAT Ahmedabad)
The issue in the present case relates whether the assessment order has been passed by Ld. AO without making inquiries or verification with respect to the deduction/exemption claimed under section 54 of the Act as discussed above and hence the assessment is erroneous insofar prejudicial to the interest of the Revenue and thus requiring revision by Pr. CIT u/s 263 of the Act.
An inquiry made by the Assessing Officer, considered inadequate by the Commissioner of Income Tax, cannot make the order of the Assessing Officer erroneous. In our view, the order can be erroneous if the Assessing Officer fails to apply the law rightly on the facts of the case. As far as adequacy of inquiry is considered, there is no law which provides the extent of inquiries to be made by the Assessing Officer. It is Assessing Officer’s prerogative to make inquiry to the extent he feels proper. The Commissioner of Income Tax by invoking revisionary powers under section 263 of the Act cannot impose his own understanding of the extent of inquiry.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
The captioned two appeals have been filed at the instance of the Assessee against the separate orders of the Learned Principal Commissioner of Income Tax and Learned Commissioner of Income Tax (Appeals)-5, Ahmedabad, dated 17/03/2017 & 26/02/2019. ITA No. 318/Ahd/2018 is arising in the matter of the assessment order passed under s. 263 of the Income Tax Act, 1961 (here-in-after referred to as “the Act”) and ITA No. 670/Ahd/2019 is arising in the matter of assessment order passed under s. 143(3) of the Income Tax Act, 1961 relevant to the Assessment Year 2012-2013.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
