Shyam Buildstructure Private Limited Vs ITO (ITAT Jaipur)
ITAT Jaipur held that newly inserted Explanation 2(a) to Sec. 263 does not give unfettered powers to Commissioner to revise each order. Held that revisionary proceeding u/s. 263 not justified as order not erroneous or prejudicial to interest of revenue.
Facts- Vide the present appeal, the appellant has contested invocation of revisionary proceedings under section 263 by the PCIT. The appellant has mainly contested that PCIT has erred in holding that assessment order passed by AO under section 147 was erroneous and prejudicial to the interest of the revenue and the issues raised having been duly considered by the learned Assessing Officer while framing the assessment u/s 147 of the Act.
Conclusion- Held that AO had proposed the addition for whole amount but after that he considered the reply of the assessee and accepted the version submitted by the assessee, and as such, it cannot be said that order passed by the AO is erroneous or prejudicial to the interest of the revenue. The facts of the case on hand, and the facts of the above cited case are different and as such do not help the revenue.
Held that even the Expl. 2(a)& (b) do not confer unlimited powerson the PCIT, and it is held that despite there being an amendment, enlarging the scope of the revisionary power of the ld. PCIT u/s 263 to some extent, it cannot justify the invoking of the Expl. 2(a) and (b) in the facts of the present case.
