Case Law Details
Kalyani Seetharaman Vs ACIT (ITAT Chennai)
ITAT noted that the PCIT has not at all given a finding that the order of the AO i.e., the assessment order is erroneous or prejudicial to the interest of revenue and how. We have already noted the finding of PCIT in above para 4 and noted that simple assumption made by PCIT is that to verify the facts and pass assessment order but the PCIT has nowhere recorded the fact that how the assessment order is erroneous so as to prejudicial to the interest of the revenue. The case law cited by Ld. Counsel for the assessee of Punjab & Haryana High Court in the case of CIT vs Jagadhri Electric Supply & Industrial Co. [1983] 140 ITR 0490, as regards to assumption of jurisdiction, Hon’ble High Court held that the tribunal cannot substitute the grounds which the CIT(A) did not find proper to form the basis of his order and even disclosing the facts of that case Hon’ble High Court stated that recording of certificate by the ITO to the effect that firm was entitled to continuation of registration and ITO is required to apply his mind and satisfy himself. Such a recording would constitute an order for which can be revised u/s. 263 of the Act and CIT(A) can revise such an order on finding that the same is erroneous or prejudicial to revenue.
In the present case before us the PCIT has ignored the valuation report of an approved valuer filed with the AO along with the photographs and survey plan and then framed assessment and formed an opinion that the sale consideration disclosed by assessee is a right consideration. Hence, according to us PCIT cannot interfere in the assessment order while acting u/s. 263 of the Act.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
This appeal by assessee is arising out of the revision order of Principal Commissioner of Income Tax, Chennai-3 passed u/s. 263 of the Income-tax Act, 1961 (herein after referred to as ‘the Act’) vide revision no. PCIT,Chennai-3/Revision-263/100000 195594/2021 order dated 27.03.2021. Assessment was framed by ACIT, Non Corporate Circle 15(1), Chennai for the AY 2016-17 u/s. 143(3) of the Act vide order dated 19.11.2018.
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