SSG Infratech Private Limited Vs PCIT (ITAT Delhi)
ITAT Delhi held that revision under section 263 of the Income Tax Act not tenable as PCIT failed to specify definite error in the order and also AO has made proper inquiry and has taken plausible view.
Facts- The assessee is a private limited company. Post completion of assessment u/s. 143(3)/153A, reassessment u/s. 148 was initiated. However, AO accepted the contention of the assessee and passed order u/s. 143(3)/ 147. Thereafter, PCIT, after considering the replies of the assessee, vide impugned order dated 14.03.2024, held the order passed u/s 143(3)/147 of the Act as erroneous and prejudicial to the interest of the Revenue and direct AO to pass a fresh order modifying the assessment order after making proper enquiry and verification.
Being aggrieved by the order of PCIT, assessee has preferred the present appeal.
Conclusion- Held that in the instant case, AO had made proper and adequate inquiry and it is not a case of no inquiry or lack of inquiry. The PCIT had failed to point out any specific and definite error in the reassessment order and on the other hand the AO had taken a plausible view as a result concrete and definite inquiry, which was in the exclusive domain of the AO and it is not open for revisional authority to arrive at a conclusion merely on the basis of subjective exercise. This being so, we quashed the order passed u/s 263 of the Act. As a result, all the grounds taken by the assessee are allowed.
