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2022 (1) TMI 938 - AT - Income TaxRevision u/s 263 by CIT - exemption u/s.11 - assessee had not furnished confirmation from donors - difference between ‘lack of enquiry’ and ‘inadequate enquiry’ - HELD THAT:- We find that in case if the ld. PCIT is of the opinion that the ld. AO had not made requisite enquiries, then he should have made the requisite enquiries and brought on record where the ld. AO had gone wrong. Admittedly, this has not been done in the instant case.See DELHI AIRPORT METRO EXPRESS PVT. LTD. [2017 (9) TMI 529 - DELHI HIGH COURT] PCIT in the instant case had merely directed the ld. AO to make fishing and roving enquiries on the existing details already available in the assessment records by merely directing him to re-verify the same details. Hon’ble Delhi High Court in the case of PCIT vs. Modicare Ltd., [2017 (9) TMI 1238 - DELHI HIGH COURT]; ITO vs. DG Housing Projects Ltd[2012 (3) TMI 227 - DELHI HIGH COURT]; DIT vs. Jyothi Foundation [2013 (7) TMI 483 - DELHI HIGH COURT] had uniformly held that the exercise of jurisdiction u/s.263 of the Act by the ld. PCIT cannot be outsourced by the ld. PCIT to the ld. AO. In either case, there is a huge difference between ‘lack of enquiry’ and ‘inadequate enquiry’. It is for the ld. AO to decide the extent of enquiry to be made as it is his satisfaction what is required under law. We find that the ld. PCIT had not invoked Explanation 2 to Section 263 in his entire order passed u/s.263 of the Act. Despite this fact, for academic reasons, we proceed to address the arguments of the ld. DR in this regard. The said explanation does not confer unfettered powers to the ld. PCIT to assume jurisdiction u/s.263 of the Act to revise every order of the ld. AO to re-examine the orders already examined during the course of assessment proceedings. Intention of the legislature could not have been to enable the ld. PCIT to find fault with each and every assessment order, without conducting any enquiry or verification in order to establish that the assessment order is not sustainable in law, since such an interpretation will lead to unending litigation and there would not be any point of finality in the legal proceedings. The opinion of the ld. Commissioner referred to Section 263 of the Act has to be understood as legal , judicious opinion and not arbitrary opinion. Even in the case of Nirav Modi [2016 (11) TMI 1498 - SC ORDER] categorically stated that the ld. PCIT should conduct enquiry on his own to find out whether there is any error in the details furnished by the assessee. - Decided in favour of assessee.
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