Case Law Details
Jitendra Rana Vs PCIT (ITAT Jabalpur)
Introduction: The recent case of Jitendra Rana vs. PCIT before the ITAT Jabalpur highlights the significance of thorough assessments. The Pr. CIT revised the assessment under Section 263, pointing out a lack of inquiry by the AO. The subsequent detailed order from ITAT has implications for the fresh adjudication of the case.
Detailed Analysis: In this case, the assessee, Jitendra Rana, did not participate in the assessment proceedings. The AO served notices via email, which went unnoticed by the assessee. The AO adopted the sale consideration at Rs. 30 lacs, contrary to the property’s market value of Rs. 67.71 lacs. Surprisingly, there was no record of the AO’s queries or investigations into this substantial difference.
The lack of inquiry raised concerns about non-application of mind by the AO, prompting the Pr. CIT to revise the assessment under Section 263. The order emphasized the need for an inquiry, especially when the recorded reason referred to the property’s market value.
The ITAT upheld the Pr. CIT’s decision, citing established precedents that an absence of necessary inquiries renders the order erroneous and prejudicial to the Revenue’s interest. The matter was remanded for fresh adjudication, allowing the assessee an opportunity to be heard.
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