Revisionary power u/s 263 cannot be invoked in case of ‘inadequate enquiry’

PCIT Vs Klaxon Trading Pvt Ltd (Delhi High Court) Delhi High Court held that revisionary power under section 263 of the Income Tax Act can be invoked only in case of ‘no enquiry’. The revisionary power cannot be invoked in case of ‘inadequate enquiry’. Facts- The respondent/assessee was incorporated in 1992, and since then, it has been trading in metal, including gold. The respondent/assessee filed its return on 28.09.2013. On 25.04.2014, a search and seizure action was conducted against the “Dua Group”. The respondent/assessee, concededly, belongs to the Dua Group. The respondent/...