Case Law Details
Pramukh Realty Vs Pr. CIT (ITAT Rajkot)
Held that an inquiry made by the AO, considered inadequate by the Commissioner of Income Tax, cannot make the order of the Assessing Officer erroneous. Thus, the Commissioner of Income Tax by invoking revisionary powers u/s. 263 cannot impose his own understanding of the extent of inquiry.
Facts-
The assessee is a partnership firm engaged in the business of Real Estate. The PCIT found that the assessee has shown the gross value of services provided at Rs. 5,31,80,902.00 whereas the assessee has shown the gross value of the sales in the profit and loss account for Rs. 4,66,04,750.00 leading to a difference of ) 65,76,152.00 only. According PCIT initiated the proceedings u/s. 263 of the Act.
The assessee contended that the assessment was framed by the AO after considering the necessary details and verification and application of mind.
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