Issue considered in order is open for revision if order is erroneous and prejudicial to interest of justice

Ajmer Development Authority Vs CIT (ITAT Jodhpur)

ITAT Jodhpur held that any issue which was considered by AO in the assessment order and such order is erroneous and prejudicial to the interest of justice, then, such order would be open for revision under section 263 of the Income Tax Act.

Facts- CIT (Exemption) after examining the records issued a show cause notice u/s 263 of the Income Tax Act, 1961, calling upon the assessee as to why assessment order framed u/s 147 r.w.s. 143(3) of the Act, dated 12.12.2019 should not be revised. In response to the notice issued to the assessee, Ld. Authorized Representative of the assessee attended the proceedings and filed submissions. However, the submissions filed by the assessee was not found acceptable by the Ld.CIT(Exemption) and he set aside the assessment order and directed the Assessing Officer (“AO”) to frame denovo assessment as directed in the order.

Aggrieved against this, the assessee preferred appeal before this Tribunal.

Conclusion- In our considered view, any issue which was considered by the AO in the assessment order, such order would be open for revision u/s 263 of the Act, if such order is erroneous and prejudicial to the interest of justice.

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