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2022 (6) TMI 112 - ITAT MUMBAIRevision u/s 263 by CIT - As per CIT AO during the course of assessment proceedings did not examine the genuineness of the transaction and capacity of the loan creditors of new loans added during the year - Also did not even call for confirmations of loan transactions from the purported loan creditors - HELD THAT:- Though, the return filed by the assessee was selected for "Complete Scrutiny" under the Category "CASS", however, there is no discussion on examination/verification conducted by the AO on the issues highlighted by the learned PCIT in the assessment order. There is also no mention in the assessment order about the notices being issued and reply being filed on these issues during assessment proceedings. It is pertinent to note that as per Explanation 2 to section 263 of the Act, order passed by the AO shall be deemed to be erroneous insofar as it is prejudicial to the interest of revenue if the said order is passed without making inquiries or verification, which should have been made by the Assessing Officer. In view of the facts as are available on record, we are of the considered view that the present case clearly falls within the ambit of provision of the aforesaid Explanation. Thus, the impugned revision order passed under section 263 of the Act is completely justified in the facts of the present case. Accordingly, the grounds raised by the assessee are dismissed.
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