Case Law Details
M/s Aadhar Rice Mills Pvt. Ltd. Vs ITO (ITAT Ranchi)
I failed to understand on which basis the ld. Pr. CIT held that the assessment order dated 27.12.2016 is erroneous or prejudicial to the interest of revenue without calling and perusing the relevant assessment records an merely on the basis of proposal for revision sent to him by the ITO, Ward-1, Ranchi. From the assessment order dated 27.12.2016, I also observe that at page 3, the AO has examined the claim of the assessee u/s.80IB of the Act and thereafter held that the assessee is entitled for claim of deduction u/s.80IB(11A) of the Act, hence, it is not a case of no enquiry.
Provisions of Section 263 of the Act, the ld. Pr.CIT is empowered to revise the assessment order where such assessment order is erroneous or prejudicial to the interest of revenue after calling and examining the relevant assessment records and holding that either there is no enquiry or there is insufficient or inadequate enquiry by the AO on a particular issue but no such exercise has been undertaken by the ld. Pr. CIT while passing the impugned order u/s.263 of the Act either.
Therefore, ld. Pr. CIT has proceeded to revise the scrutiny assessment order and directing the AO to decide the issue afresh i.e. for making rowing enquiry which is not permissible u/s.263 of the Act. It is the duty of the ld. Pr.CIT that in a case of insufficient or inadequate enquiry. Further necessary enquiry has to be conducted by the revisionary authority and thereafter only the assessment order can be tagged as erroneous or prejudicial to the interest of revenue. In absence of such exercise, revision of assessment order u/s.263 of the Act has to be held as passed without application of mind and without following mandate of the legislature provided u/s.263 of the Act.
Keeping in view the foregoing discussions, I have no hesitation to hold that the Pr. CIT was not justified and correct in revising the scrutiny assessment order u/s.263 of the Act merely on a proposal sent to him by the ITO, Ward-1 ,Ranchi without verification and examination of relevant assessment record and without any positive findings that the order of the AO is erroneous or prejudicial to the interest of revenue.
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