2023 (9) TMI 608 - ITAT RAIPUR

Revision u/s 263 - case was selected for complete scrutiny and A.O. allowed the claim of depreciation for addition to different block of assets without verification - HELD THAT:- PCIT was found to be primafacie satisfied with the submission of the assessee supported with evidence, documents and bills but was keen have it further verified. Ld PCID was of the opinion that the order of Ld AO was erroneous since certain issues which should have been looked into by the Ld AO were not examined by him during the original assessment proceedings u/s 143(3), however the two conditions which were mandatory to be established could not be satisfied by bringing on any finding or recording that could establish that the order of the AO was erroneous as well as prejudicial to the interest of the revenue.

Under such circumstances the order of Ld PCIT has been found to be failed on the test as laid down by Hon’ble Apex court while assuming jurisdiction u/s 263 in the case of Malabar Industrial Company Ltd [2000 (2) TMI 10 - SUPREME COURT] We therefore respectfully following the binding principle of law as laid down by Hon’ble SC in the Malabar Industrial Company Ltd.(supra) are inclined to hold that the order of Ld PCIT was lacking in complying with the twin compulsory conditions as mandated u/s 263, consequently the same is bad in law and liable to be quashed and we direct to do so. Appeal of the assessee is allowed.