Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (5) TMI 510 - AT - Income TaxRevision u/s 263 - assessee’s case selected for limited scrutiny under CASS - AO not conducting any enquiry on the issue of Insurance Premium (Keyman Policy) - HELD THAT:- PCIT could not have exercised his revisional jurisdiction on the issue on which he found fault with the action/omission on the part of AO because in the first place the AO could not have been faulted for not conducting any enquiry on the issue of Insurance Premium (Keyman Policy) since the assessee’s case was selected for scrutiny only for limited purpose under CASS and the issue of Insurance Premium (Keyman Policy) was not the reason for selection of the case for limited scrutiny. As per the CBDT circular AO could not have initiated enquiry on the issue of Insurance Premium (Keyman Policy) of ₹ 10,00,000/- and it is settled law that CBDT circulars are binding on income tax authorities. Therefore in such a scenario, the Ld. PCIT could not have invoked jurisdiction u/s 263 of the Act because he could not have held the AO’s order to be erroneous because the AO was justified in not enquiring in to the issue of Insurance Premium (Keyman Policy) since the AO has gone as per the dictum of CBDT circular on the subject. Therefore, the AO’s action/ omission of not looking into the issue of Insurance Premium (Keyman Policy) cannot be termed as erroneous. - Decided in favour of assessee.
|