Hari Enterprise Vs PCIT-1 (ITAT Ahmedabad)
ITAT Ahmedabad held that PCIT cannot exercise revisionary power u/s. 263 to restore an issue for the purpose of verification only since restoring matter for verification means that PCIT is not sure of assessment order being erroneous causing prejudice to the revenue.
Facts- Revisionary jurisdiction was exercised on the order passed by the Assessing Officer (AO) under section 143(3) of the Act for the impugned assessment year in the case of the assessee, noting several errors in the same causing prejudice to the Revenue. Notably, the errors related to payment of rent and professional charges being made without deduction of TDS, closing stock being under-valued by the assessee, and unsecured loans taken by the assessee remaining to be inquired into for their genuineness.
All these errors were confronted to the assessee during the revisionary proceedings, due reply filed by the assessee, and after considering the same and not being convinced with the reply of the assessee, Pr.CIT held, that the AO having not verified the various issues identified by him, accordingly, he set aside the assessment order directing the AO to verify each such issue. Aggrieved with the same, the assessee has come up before the Tribunal.
