Revision u/s 263 sustained as assessment completed in a routine and mechanical manner

Jaydeep Construction Vs PCIT (ITAT Mumbai)

ITAT Mumbai held revisionary order under section 263 of the Income Tax Act to be proper and just as assessment was completed in a routine and mechanical manner without due diligence and without due application of mind.

Facts- The assessee is a partnership firm and is involved in real estate business. The case was selected under CASS for complete scrutiny and the Assessing Officer completed assessment of the firm u/s. 143(3) r.w.s. 143(3A) & 143(3B) of the Act on 27.02.2021 accepting the return of income declared by the assessee at ₹.Nil. On examination of records, PCIT observed that assessment order suffers from infirmities warranting revision within the scope of section 263 of the Act.

Conclusion- Held that no doubt the assessment order is cryptic and it is not a speaking Further, we observe that in the 263 revision order several issues were raised by Ld. Pr.CIT like the issue of 43CA, GST Payable, Non-declaration of profits of the project and unsecured loans.

Since the issue is remitted back to the file of the Assessing Officer, we direct the Assessing Officer to verify the stamp duty value as per the provisions of Section 43CA in this case and we are not altering any of the other directions of the Ld. Pr.CIT in this regard. Accordingly, we hold the order passed under section 263 of the Act is proper and just.

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