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2022 (5) TMI 854 - AT - Income TaxRevision u/s 263 - PCIT assumed jurisdiction u/s.263 on the issue of unverified purchases claims to have made by the assessee - HELD THAT:- The assessee has made purchases of Rs.8.65 Crs. During the course of assessment proceedings, the assessee had furnished complete list of parties from whom he had made purchases. AO had issued notices to all the parties and out of 28 parties, 7 parties have replied with necessary evidences and remaining parties did not respond to the notice issued by the AO - AO in the absence of necessary information regarding total purchases has taken a view and has estimated net profit @ 7.5% on total sales. PCIT on very same issue of unverified purchases assumed his jurisdiction and held that the assessment order passed by the AO is erroneous in so far as it is prejudicial to the interest of the Revenue. PCIT as erred in assuming jurisdiction u/s.263 of the Act, because assessment order passed by the AO is neither erroneous nor prejudicial to the interest of the Revenue, because, the AO had examined the purchases claims to have made by the assessee, during the course of assessment proceedings and after considering necessary facts has taken one of the possible view and has estimated gross profit @ 7.5% on total sales. The view taken by the AO is a possible view and thus, we are of the considered view that the PCIT cannot assume jurisdiction to revise the assessment order on very same issue by holding that the AO ought to have made further enquiries on the issue. Thus assessment order passed by the AO is neither erroneous nor prejudicial to the interest of the Revenue and thus, we quashed the order passed by the PCIT u/s.263 - Decided in favour of assessee.
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