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2019 (6) TMI 1122 - AT - Income TaxRevision u/s 263 by CIT - A.O. has not framed the impugned order u/s 143(3) after making proper enquiry - capital account of a partner need to brought to tax as income of the assessee u/s 68 - HELD THAT:- PCIT has essentially exercised revisionary power u/s 263 of the Act to examine the source of source of partner which is not permissible in the eyes of law. In fact during the course of hearing before us, it was brought to our notice that notice u/s 148 of the Act has been issued in case of Shri Shaleen Vajpayee and, therefore, revenue is otherwise not without any legal recourse of examining such investment in the firm. Acceptance of capital introduction from the partner on the evidence placed on record by the Assessing Officer is a possible view and, not an unsustainable view and, therefore, even otherwise invocation of section 263 is not in accordance with law. In CIT vs. DLF Ltd. [2012 (9) TMI 626 - DELHI HIGH COURT] applying the mandate of Malabar Industrial Co. Ltd. vs. CIT [2000 (2) TMI 10 - SUPREME COURT] and CIT vs. Max India Ltd. [2007 (11) TMI 12 - SUPREME COURT] has held that it is not mere prejudicial to revenue or a mere erroneous view which can be revised but there must be an element of unsustainability which clothes the Commissioner with the jurisdiction u/s 263 of the Act. Also in the case of ITO vs. D.G. Housing Project Ltd [2012 (3) TMI 227 - DELHI HIGH COURT] held that in case of inadequate enquiry it is incumbent for the Commissioner to conduct enquiry and not merely remit the matter to the Assessing Officer without conducting any verification/enquiry. Also DELHI AIRPORT METRO EXPRESS PVT. LTD. [2017 (9) TMI 529 - DELHI HIGH COURT] . We have no hesitation in holding that the Ld. Pr.CIT had wrongly invoked the revisionary powers u/s 263 of the Act and we have no option but to quash the same. - Decided in favour of assessee.
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