When the issue of siphoning off of funds is settled by the CIT(A), review proceedings u/s 263 cannot be initiated

Rambagh Palace Hotels Pvt Ltd Vs ITO (ITAT Delhi) –  In this case ld CIT(A) had adjudicated upon on all the issues. Therefore, the assessment order has merged in the order of CIT(A). Hence, ld. CIT was debarred to assume jurisdiction u/s 263 of the Act. The assessment cannot be treated as erroneous in so far as prejudicial to the interest of revenue merely on the basis of a complaint and that too for the purpose of making roving inquiries.

IN THE INCOME TAX APPELLATE TRIBUNAL

[ DELHI BENCH “F” DELHI ]

I. T. A. No. 394 (Del) of 2010

Assessment year: 2006- 07.

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