Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (3) TMI 73 - AT - Income TaxRevision u/s 263 - CIT observed that, AO had accepted the assessee's claim without making any verification with respect to the various expenses claimed against the capital gains and against its business income and since the same needed verification, the order passed by the Assessing Officer was, therefore, erroneous - HELD THAT:- The basis for holding the assessment order erroneous by the Ld. PCIT, we find is that the details, evidences and explanation filed by the assessee in support of its claim of capital gains and business loss returned were accepted as such by the AO without conducting any inquiry and or verification. The entire thrust of the Ld. Pr.CIT is on this aspect of non-verification of the evidences, details and explanations filed by the assessee as is evident from the findings of the Ld. Pr.CIT. AO can be satisfied about the veracity and genuineness of the transaction basis the supporting documentary evidences and explanations filed with respect to the same. But at the same time if the evidences and documents raise suspicion then a case for further verification is compulsorily made out and the absence of the same surely makes the order erroneous so as to cause prejudice to the Revenue. But in the present case, sadly the Ld. Pr.CIT has failed to make out a case for further verification of the details and explanations filed by the assessee. Undisputedly the AO had examined the claim of capital gains and business losses returned by the assessee, during assessment proceedings. Even with regard to the issues flagged by the Ld. Pr.CIT, the AO had examined the same with the evidences, details and explanations filed by the assessee. There is no dispute with regard to the aforesaid. Even before the Ld. Pr.CIT the assessee had referred to the said evidences and explained the queries raised by the Ld. Pr.CIT. Without pointing out fallacy in the same so as to raise doubt regarding the veracity of the claim, thus calling for further verification, we cannot agree with the findings of the Ld. Pr.CIT that the issues required further verification and the absence of the same resulted in the assessment order so passed being erroneous. The order of the Ld. Pr.CIT, in the impugned case, falls grievously short of this requirement of pointing out the absence of enquiry "which should have been made" in the present case. And therefore, we hold, that there is no finding by the Ld. Pr.CIT of the assessment order being erroneous. The jurisdiction assumed by the Ld. Pr.CIT, therefore u/s. 263 of the Act for revising the assessment order therefore, is, we hold, not as per law and the order so passed by the Ld. Pr.CIT is accordingly set aside. - Decided in favour of assessee.
|