Kaivan Jitendrakumar Shah HUF Vs PCIT (ITAT Ahmedabad)
ITAT Ahmedabad held that revisional jurisdiction u/s. 263 of the Income Tax Act not justifiable as AO had examined the issue in the course of assessment proceeding.
Facts- The case of the assessee was reopened u/s. 147 of the Act with the issuance of notice under Section 148 of the Act dated 30.03.2021. The revised assessment was completed u/s 147 r.w.s. 144B of the Act dated 21.03.2022 and the return of income as shown by the assessee was accepted.
Subsequently, PCIT noticed that the issue on which the case was reopened was not properly examined by the AO. The case was reopened to examine the accommodation entry of Rs. 35,04,500/- taken by the assessee from paper/dummy company controlled and managed by an entry operator Shri Rajiv Shah (Jignesh Shah & Sanjay Shah Group). According to PCIT, in spite of this specific reason for reopening no addition was made and, therefore, the order of AO was treated as erroneous and prejudicial to the interest of the Revenue. Accordingly, PCIT had passed the impugned order directing AO to complete the assessment de novo after proper examination of the issues and duly examining the facts of the case. Aggrieved by the order passed by PCIT, the assessee has preferred the present appeal.
