Navin Kalidas Patel Vs PCIT (ITAT Ahmedabad)
ITAT Ahmedabad held that non application of mind or wrong assumption of facts or incorrect application of law by the A.O. will make the order erroneous and pre-judicial to the interest of revenue. Thus, as order passed without adequate inquiry, revision u/s. 263 justified.
Facts- The case was selected for scrutiny under CASS for verification of “Large investment in property (AIR) as compared to total income”. The assessment was completed u/s. 143(3) of the Act on 29.11.2017 and the returned income was accepted. Subsequently, the assessment record was called for by the Pr. CIT, wherein it was noticed that the source of the investment in the property was not properly examined by the AO. PCIT, therefore, held that the order of the AO was erroneous and prejudicial to the interest of revenue. Accordingly, a notice u/s. 263 of the Act was issued by the Pr. CIT on 16.03.2022 and, thereafter, on various other dates. No compliance made before Pr. CIT in response to the notices u/s. 263 of the Act. Thereafter, Pr. CIT passed the impugned order u/s. 263 of the Act and the assessment order was set aside with a direction to the AO to make requisite enquiries and proper verification and, thereafter, to complete the assessment de novo.
