Smt. Teena Garg Vs PCIT (ITAT Chandigarh)
ITAT Chandigarh held that invocation of revisionary power under section 263 of the Income Tax Act not sustainable since PCIT failed to establish that assessment order was erroneous and prejudicial to the interest of revenue. Accordingly, appeal of assessee allowed.
Facts- The case of the assessee was reopened under section 147 of the Income Tax Act based on the information that the assessee had claimed bogus long term capital gain. After considering the return of income, computation and other submissions/documents filed by the assessee, Assessment was completed on returned income i.e. Rs. 19,23,970/-. Thereafter, PCIT exercised revisionary power under section 263 vide the impugned order. Thus assessee being aggrieved by the impugned order has filed present appeal challenging its legality, validity and proprietary of the same.
Conclusion- Held that during the course of the proceedings u/s 147/148 of the Act several queries were raised and that the same were properly replied by the assessee. The same were duly considered. There was a “checking and verification” which fact is recorded. Therefore in law it cannot be said that assessment u/s 147/148 of the Act was done by Ld. AO without conducting any inquiry and verification& the case is one of no inquiry. The Ld. PCIT in the impugned order has failed to establish erroneous character of assessment order and that too in such a manner that it is prejudicial to the interest of Revenue.
