Amazon Retail India Private Limited Vs PCIT (ITAT Delhi)
ITAT Delhi held that revisionary proceedings under 263 of the Income Tax Act justifiable since related-party expenses were accepted without detailed verification. Accordingly, revision is upheld and the present appeal is dismissed.
Facts- The assessee company is engaged in the business of retail trading of food products. The principal issue contested by the appellant assessee through the grounds of appeal is regarding the invocation of revisionary proceedings under section 263 of the Act with respect to his order dated 28.03.2025 passed by the ld. AO in the case of the assessee for AY 2021-22 through order dated 28.03.2025. The ld. Counsel fiercely argued towards the non-maintainability of the impugned revisionary order u/s 263 dated 28.03.2025.
Conclusion- Held that Hon’ble jurisdictional High Court in the case of Clix Finance in ITA No.1428/Del/2018 have observed that inadequate enquiry by the AO in respect to claims made by the taxpayer would be a justify ground for invocation of revisionary powers under section 263 by the revenue authorities. The Hon’ble High Court of Himachal Pradesh in its decision in the case of Vir Bhadra Singh (HUF) 86 taxmann.com 113 while deciding the failure on the part of the AO to pursue a line of enquiry, which should have been done, has gone further to hold that ‘any enquiry without application of mind is nonest’.
