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2023 (4) TMI 807 - AT - Income TaxRevision u/s 263 - Addition u/s 68 - cash deposits made into the bank account during the demonetization period under the provisions of section 115BBE -‘AO's order as 'erroneous as well as prejudicial to the interest of the revenue’ - HELD THAT:- Hon’ble Apex Court in Malabar Industries Ltd. vs. CIT [2000 (2) TMI 10 - SUPREME COURT] wherein their Lordship have held that twin conditions needs to be satisfied before exercising revisional jurisdiction u/s 263 by the CIT. Twin conditions are that the order of the Assessing Officer must be erroneous and so far as prejudicial to the interest of the Revenue. Jurisdictional condition as required u/s 263 of the Act to revise the order of the Assessing Officer is absent in assessee`s case, since the order of the Assessing Officer cannot be termed as ‘erroneous as well as prejudicial to the interest of the revenue’. The whole cash deposit (After giving benefit as declared under PMGKY), the AO had in fact enquired the issue raised by ld PCIT. The Assessing Officer made adequate enquiry in respect of closing stock also. Thus Assessing Officer’s order cannot be termed as erroneous as well as prejudicial to the interest of the revenue and therefore, jurisdictional condition as prescribed by statute for invoking revisional jurisdiction is absent and therefore, we are inclined to quash the impugned order of the ld. PCIT. Appeal of the assessee is allowed.
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