2005 (8) TMI 106 - HC - Income Tax

Revision u/s 263 - erroneous assessment - confirmations from creditors were not filed - failure on the part of AO to conduct enquiry - Held that:- It is true that in a given case not holding any enquiry, which is relevant for assessment may indicate non-application of mind by the Assessing Officer or furnish ground for taking action under section 263 by the Commissioner of Income-tax.

From the record of the proceedings, in the present case, no presumption can be drawn that the Assessing Officer had not applied his mind to the various aspects of the matter. In such circumstances, without even prima facie laying the foundation for holding that the assessment order is erroneous and prejudicial to interest in any matter merely on the specious ground that the Assessing Officer was required to make an enquiry, cannot be held to satisfy the test of necessary condition existing for invoking jurisdiction under section 263 of the Income-tax Act.

The finding of the Tribunal that the Income-tax Officer had passed the assessment order after relevant enquiries and considering the aspects of the matter required by the Commissioner of Income-tax to be considered by him is a finding of fact and on the basis of which, the jurisdiction assumed by the Commissioner of Income-tax being non-existent must be held to be not sustainable.

On the finding reached by the Assessing Officer, no question of law really arises for consideration in this appeal.

Revenue appeal dismissed.