Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2024 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (4) TMI 139 - ITAT DEHRADUNRevision u/s 263 - PCIT found the order to be erroneous and prejudicial to the interest of Revenue on account of non-examination of the genuineness of the sundry creditors and allowing 80IC deductions - HELD THAT:- Observations of PCIT that the assessment order was passed without due diligence is not well founded. Apparently, the AO had called for relevant information on regular basis and which were responded by the assessee. The reply, shows that the assessee had provided relevant information including audit report justifying the claim of deduction. We find no force in the contention of ld. DR that the AO may have examined the question of eligibility, but, not the quantum. The two aspects supplement each other. PCIT has concluded the fact of assessment order being passed without due diligence on the basis that although the assessee had furnished balance sheet, Profit & Loss Account and Form No.10CCB, the AO had not enquired from the assessee to comply with the queries raised in this regard. Certainly, the assessment order is silent on some aspects, but, at the same time, the PCIT before whom the assessee had given a detailed explanation of the income from two units and how they were reported in the financials and other relevant evidences available in assessment record have not been examined to give a finding that what was the extent of claim of deduction of the assessee which was left out of the scrutiny of the AO. Merely making a bald allegation of assessing officer not carrying out investigations sufficiently or to say, to the satisfaction of the PCIT, cannot be basis to invoke the provisions of section 263 - Thus PCIT has fallen in error in concluding that the order of the ld.AO was erroneous so far as prejudicial to the interest of the Revenue. Decided in favour of assessee.
|