Precious Buildtech Pvt Ltd Vs PCIT (ITAT Lucknow)
No Power to Revise without Own Enquiry- Assessee Has No Control on AO’s Pen – PCIT Can’t Remand Without Investigation – 263 Order Invalid Where No Independent Enquiry Conducted
Assessee, engaged in real-estate business, had filed return declaring ₹81.54 lakh. The case was selected for scrutiny for examining high closing stock & mismatch between Service-tax & ITR turnover. AO, after issuing multiple notices u/s 142(1) & 143(2), accepted returned income vide assessment order dated 27.12.2019.
PCIT, however, initiated revisionary proceedings u/s 263 alleging that AO failed to make adequate enquiry on several issues – adoption of AS-7/ICDS-III, verification of customer advances of ₹18.20 crore, application of s.43CA to sales, taxation of deemed rent on unsold flats, cash deposits during demonetization period, & genuineness of brokerage of ₹44.50 lakh. Holding the order as erroneous & prejudicial, PCIT set aside the assessment directing AO to frame assessment de novo.
Before Tribunal, Assessee contended that all requisite details were called & examined by AO, hence the order could not be branded as erroneous merely because PCIT held a different view. It was submitted that if PCIT considered AO’s enquiry insufficient, he was duty-bound to make his own enquiry before exercising powers u/s 263. Reliance was placed on PCIT v. V-Con Integrated Solutions Pvt Ltd (SLP(C) Diary No.13205/2025, SC), PCIT v. Delhi Airport Metro Express Pvt Ltd (Delhi HC), & Arun Kumar Garg (HUF) v. PCIT (Del ITAT).
