Revisionary power u/s 263 unjustified as due enquiry carried out by AO

Synergy India Vs PCIT (ITAT Chandigarh)

ITAT Chandigarh held that invocation of revisionary powers u/s 263 post due enquiry carried out by AO and assessment order passed with due application of mind is unjustified and untenable in law.

Facts- The Assessee has contended that the ld. PCIT, while wrongly assuming jurisdiction u/s 263 of the Act and while wrongly setting aside the assessment order dated 20.12.20 19, has failed to appreciate that detailed inquires had in fact been made by the AO during the assessment proceedings, with regard to the cash deposited during the demonetization period; that this is clearly evident from the numerous questionnaires and show cause issued to the Assessee by the AO, especially the show cause notice dated 27.11.2019 (ABP 44-47), to which, the Assessee gave ample reply.

It has been contended that despite the matter having been adequately examined by the AO during the assessment proceedings, the ld. PCIT has passed the impugned order without taking into consideration the replies of the Assessee, furnished during the revision proceedings.

Conclusion- We hold that the ld. PCIT was not justified in invoking the revisionary powers u/s 263 of the Act, when, as evident from the record, due enquiry had been carried out by the AO and the assessment order was passed with due application of mind by the AO. Accordingly, the grievance sought to be raised by the Assessee is found to be justified.

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