Mere Suspicions not enough for Initiation of section 263 Proceedings

Sunita Goyal Vs PCIT (ITAT Chandigarh) In the absence of any evidence or fact rebutting the claim of the assessee, the order passed after due enquiries as per record by the AO cannot be set aside on mere inferences and presumptions. The suspicions of the ld. PCIT cannot be the basis for setting aside a validly passed assessment order. Law requires the ld. PCIT to meet the twin conditions of pointing to the error in the order passed and that too such an error which can be termed to be prejudicial to the interests of the Revenue. These mandatory conditions in the facts of the present case are no...