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2019 (7) TMI 79 - AT - Income TaxRevision u/s 263 - scope of Explanation (2) inserted u/s 263 by the Finance Act, 2015 w.e.f. 01-06-2015 - proper enquiries / verifications - unexplained in investment in land - AO accepted investment after enquiry and even issuing summons u/s. 131 and obtaining confirmations and affidavits - HELD THAT:- It is also a well settled law that where the enquiries have been made by the Assessing Officer even though they are inadequate, the provisions of section 263 cannot be invoked. Lack of enquiry and inadequate enquiries are on different pedestal. All the lenders are closely related to the assessee and have supported the assessee by filing confirmations and affidavits. The AO after conducting enquiries came to the conclusion that the source of investment in land has been duly explained by the assessee and hence, no addition was made. The order of AO may be prejudicial to the interest of revenue but the same is not erroneous as the AO has taken a possible view after conducting prudent enquiries and examining the documents on record. In so far as the contention of the Department that since the impugned order has been passed after the amendment, therefore, amended provisions of section 263 would apply, we do not find favour with this contention. The amendment to section 263 by the Finance Act, 2015 is effective from 01-06-2015 and does not operate retrospectively. Thus, the amended provisions of section 263 would have no bearing on the assessment year under appeal i.e. assessment year 2010-11. Merely for the reason that the order u/s. 263 has been passed after the amendment would not bring the assessment year 2010-11 within the ambit of amended provisions of section 263. The Mumbai Bench of Tribunal in the case of Reliance Money Infrastructure Ltd. Vs. Pr. CIT [2017 (10) TMI 630 - ITAT MUMBAI] while dealing with the issue on retrospective applicability of section 263 in turn has relied on the Tribunal decision in the case of Narayan Tatu Rane V/s. ITO [2016 (5) TMI 1162 - ITAT MUMBAI] and has held the provisions of section 263 amended by Finance Act, 2015 does not operate retrospectively. Similar view has been taken by the Delhi Bench of Tribunal in the case of M/s. Arun Kumar Garg HUF Vs. Pr. Commissioner of Income Tax [2019 (4) TMI 400 - ITAT DELHI] Thus, in view of the facts of the case and decisions discussed above, we hold that the Pr. CIT exceeded his jurisdiction in invoking revisional powers. - Decided in favour of assessee.
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