2022 (4) TMI 724 - AT - Income Tax

Revision u/s 263 - Reopening of assessment initiated against assessee - AO during the course of assessment proceedings has not properly examined the difference in the closing balance AND gift received by the assessee from his wife was not supported with proper documentary evidences - HELD THAT:- Admittedly, the AO during the course of assessment proceedings after making all possible enquiries had completed the assessment under section 147/143(3) - During the course of such assessment, the A.O. had asked the assessee to furnish details of all gifts, loans and advances taken and given during the year or within three years.

The amount was nothing, but, repayment of loan taken by the assessee in the past and, therefore, repayment of the loan by the assessee cannot be considered as income of the assessee. Similarly, assessee had filed the details such as copy of Gift Deed, copy of bank statement, copy of acknowledgment of return of income for the A.Ys. 2008-09 to 2011-12, copy of ledger account of Sh. Punit Gupta in the books of the assessee for the period from 01.04.2010 to 31.03.2011. We find an amount of ₹ 2 lakhs was withdrawn by Smt. Pooja Gupta from her bank account on 22.11.2020 and the cash gift was made on 23.11.2010. Under these circumstances, when the A.O. had made full enquiry, in our opinion, the same cannot be considered as lack of enquiry or lack of investigation. Further the view taken by the A.O. after considering various details furnished by the assessee during the course of assessment proceedings cannot be termed as unsustainable in law. The A.O. in the instant case has taken a plausible view.

Since in the instant case the AO has conducted due enquiry and after being satisfied, accepted the returned income and passed the order under section 143(3)/147 therefore, the order cannot be called as an erroneous order. Therefore, even if the order is prejudicial to the interests of Revenue, but, the same not being erroneous, the twin conditions are not satisfied and, therefore, the Ld. PCIT is not justified in invoking the provisions of Section 263 - Decided in favour of assessee.