Case Law Details
Manohar Lal Sarraf and Sons Pvt Ltd Vs Pr. CIT (ITAT Delhi)
Simply because the Assessing Officer (AO) did not extensively express satisfaction, the Principal Commissioner of Income Tax (Pr. CIT) does not have jurisdiction under section 263.
A brief assessment order doesn’t necessarily indicate a lack of enquiry or that the order is erroneous, prompting an invocation of section 263.
An order under section 263 of the Act based on an audit objection contradicts established legal norms.
The assessee argued that the Pr. CIT passed the revision order under section 263 based on an audit objection, contrary to settled legal position. Furthermore, the assessee’s counsel argued that the order did not fulfill the twin conditions precedent, namely that the order is erroneous in so far as it is prejudicial to the interests of Revenue. The ITAT concurred with the assessee’s arguments and concluded that the Pr. CIT had no jurisdiction under section 263 as the assessing officer had examined all the records, evidences, and documents, and had applied due diligence in passing the assessment order.
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