Case Law Details
Rajendrakumar Kantilal Patel Vs PCIT (ITAT Surat)
ITAT Surat held that issues raised by PCIT in his order u/s 263 are already examined by AO and AO passed the assessment order after calling for all the details and considering the reply/ documents. Accordingly, assessment order passed after due application of mind cannot be termed as erroneous and prejudicial to the interest of the revenue.
Facts- The present appeal is preferred by the appellant against the order passed by the Principal Commissioner of Income Tax (PCIT) mainly contesting initiation of revision proceedings u/s 263 by holding that assessment order was erroneous and prejudicial to the interests of the revenue. Appellant also contested that complete details in the matter was submitted before AO during the course of assessment proceedings.
Conclusion- Held that issues raised by ld PCIT in his order under section 263 of the Act have been examined by the assessing officer and the assessment order was passed by assessing officer, after calling for relevant information and after detailed examination of the same. The Assessing Officer has passed the assessment order after calling for details on the issue and after considering the reply and documents and after verification of the same and after due application of mind passed the assessment order, so it cannot be termed as erroneous and prejudicial to the interest of the revenue. So, the Ld. PCIT’s finding fault, with the order of the Assessing Officer is erroneous as well as prejudicial to the interest of revenue, on account of lack of inquiry, has to fail. Based on these facts and circumstances, we quash the order dated 19.03.2018 passed by the ld PCIT under section 263 of the Act and allow the appeal of the assessee.
FULL TEXT OF THE ORDER OF ITAT SURAT
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