2023 (3) TMI 1108 - ITAT AMRITSAR

Revision u/s 263 - distinction between 'lack of inquiry' and 'inadequate inquiry' - revision initiated on the basis of audit objection and lack of enquiry on the part of the AO - HELD THAT:- We have to understand that lack of enquiry/no enquiry is different from inadequate enquiry and it is only in case of no enquiry by the AO, Pr. CIT/CIT can exercise jurisdiction u/s 263 of the Act and not in case where the AO has made enquiries as seems appropriate in the facts and circumstances of the case. In the instance case, inquiry on relevant issue has been made by AO, hence no action invited u/s 263.

Our view gets support from the Judgement given by the Hon’ble Delhi High Court in case of “CIT vs. Sunbeam Auto Ltd” [2009 (9) TMI 633 - DELHI HIGH COURT]

We hold that the impugned order passed on the issue of audit objection and on No/Lack of enquiry by the PCIT is perverse to facts on record in holding assessment order erroneous and prejudice to the interest of revenue. Appeal of assessee allowed.