Case Law Details
AU Small Finance Bank Ltd Vs PCIT (ITAT Jaipur)
ITAT Jaipur held that invocation of revisionary proceedings u/s 263 of the Income Tax Act justified in absence of proper inquiry by AO which renders the assessment order erroneous as well as prejudicial to the interest of revenue.
Facts- PCIT on examination of the details/ record available before her observed that the assessment order passed on 19-03-2021 u/s 143(3) r.w.s. 143(3A) and 143(3B) of the assessee for the assessment year 2018-19 appears to be erroneous insofar as it is prejudicial to the interest of the Revenues and she proposed to modify the order on the above issue under the power vested u/s 263 of the Act. Being aggrieved, appellant has preferred the present appeal mainly contested invocation of provisions of section 263.
Conclusion- The Bench meticulously pondered on the invocation of Section 263 of the Act by the ld. PCIT and felt that Hon’ble Delhi High Court in the case of M/s. Gee Vee Enterprises 99 ITR 375 held that the Assessing Officer is not only an adjudicator but also an investigator and failure of the AO to conduct the required inquiry and accepting the statement of the assessee without due verification renders the orders erroneous as well as prejudicial to the interest of the Revenue. Absence of proper inquiry by the AO would render the assessment order erroneous as well as prejudicial to the interest of the revenue.
FULL TEXT OF THE ORDER OF ITAT JAIPUR
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