ABNL Investment Limited Vs PCIT (ITAT Mumbai)
Section 263 Is Not a Licence for a Second Opinion: Once the AO Enquires & Takes a Plausible View, PCIT Cannot Order a Reassessment in Disguise
Summary: The Mumbai ITAT has reiterated that the revisional power u/s 263 cannot be exercised merely because the PCIT believes that the AO should have conducted a more elaborate enquiry or reached a different conclusion. Where the AO has called for relevant particulars, examined the assessee’s replies & thereafter accepted the claim, the assessment cannot be branded as erroneous & prejudicial to the interests of the Revenue merely on account of the PCIT’s disagreement.
Business Expenditure Without Business Income
The assessee was engaged in making investments in securities & immovable properties. During the relevant year, it earned income from house property & investments. It also held vacant plots of land and a property under development.
The case was selected for complete scrutiny, inter alia, to examine the substantial investments in non-business assets, investments in immovable properties & deduction claimed under Chapter VI-A. During assessment, the assessee furnished details concerning its business activities, immovable properties, depreciation, expenditure, TDS compliance, Annual Reports, Form 26AS & deduction of ₹4 crore claimed u/s 80GGB towards electoral bonds.
