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2019 (4) TMI 285 - AT - Income TaxRevision u/s 263 by CIT - Pr. CIT noted that proposal was received u/s 263 from the Assessing Officer for review of the assessment - HELD THAT:- The findings of fact recorded by the Learned Pr. CIT have not been rebutted by the Learned Counsel for the Assessee through any evidence or material on record. The Order Sheet of the Assessing Officer clearly supports the finding of Pr. CIT that Assessing Officer did not enquire into any of the matter in issue at assessment stage. It would, therefore, clearly show that Assessing Officer passed the assessment order, without making any enquiry for verification with regard to low profit, huge expenses and sundry creditors, which he should have made at assessment stage. Since, it is an admitted case of sharp fall in gross profit and net profit as compared to earlier year and that the case was selected for limited scrutiny on four items including unsecured loans, expenses and low net profit, therefore, it was the duty of the Assessing Officer to have examined the issues in detail before accepting the explanation of assessee. However, in the present case, the Assessing Officer did nothing in the matter and without enquiry or verification of the facts, accepted the returned income. Thus, there was no application of mind while passing assessment order. Therefore, Explanation-2 to Section 263 of the Income Tax Act, 1961, would be clearly attracted in the case of the assessee. We may also note that there is no bar u/s 263, if a reference is made by the AO to the Pr. CIT to invoke jurisdiction u/s 263. Pr. CIT may get information from any source, but, before proceeding under section 263, the Pr. CIT shall have to satisfy the conditions of Section 263 of the Income Tax Act before invoking jurisdiction. In the present case, as noted above, the Learned Pr. CIT has satisfied all the conditions of section 263 before taking action against the assessee under section 263. Pr. CIT was justified in invoking jurisdiction under section 263 - Decided against assessee.
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