TMI Blog2022 (11) TMI 317X X X X Extracts X X X X X X X X Extracts X X X X ..... is prejudicial to the interests of Revenue must be based on materials on record of the proceedings called for by him. If there are no materials on record on the basis of which it can be said that the Commissioner acting in a reasonable manner could have come to such a conclusion, the very initiation of proceedings by him will be illegal and without jurisdiction. The Commissioner cannot initiate proceedings with a view to start fishing and roving enquiries in matters or orders which are already concluded. AO has issued a notice dated 03-01-2019 u/s 142(1) of the Act to the assessee, wherein he, inter alia, raised queries on documents in support of deduction and exemption claimed, Confirmations of unsecured loans creditors taken during th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pugned revision order passed by Ld PCIT is not sustainable in law on all the three issues. Accordingly we quash the impugned revision order passed by Ld PCIT. Appeal filed by the assessee is allowed. - ITA No. 48/Jodh/2022 - - - Dated:- 4-11-2022 - Shri B. R. Baskaran, Accountant Member And Shri Sandeep Gosain, Judicial Member For the Assessee : Shri Rajendra Jain (Adv.) For the Revenue : Smt. Alka Rajvanshi Jain, CIT-DR ORDER PER: B.R. BASKARAN, AM The assessee has filed this appeal challenging the revision order dated 27-03-2022 passed by Ld PCIT-1, Jodhpur and it relates to the assessment year 2017-18. The assessee is challenging the validity of revision order passed by Ld PCIT. 2. The facts relating to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd prejudicial to the interests of revenue. In support of his decision, the Ld PCIT relied upon various case laws. Accordingly, he set aside the assessment order with the direction to the assessing officer to carry out necessary enquiries and take correct decision as per law. The assessee is aggrieved by the revision order so passed by Ld PCIT. 3. The Ld A.R submitted that the Ld PCIT has not properly examined the assessment record at all. He submitted that the PCIT has arrived at erroneous conclusion that the assessing officer has not properly examined the above said three issues. He submitted that the assessing officer has conducted proper enquiries with regard to the above said three issues by raising specific queries in the notices i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 263 of the Income-tax Act, 1961 empowers the Commissioner to call for and examine the record of any proceedings under the Act and, if he considers that any order passed therein, by the Assessing Officer is erroneous in so far as it is prejudicial to the interests of the Revenue, to pass an order upon hearing the assessee and after an enquiry as is necessary, enhancing or modifying the assessment or cancelling the assessment and directing a fresh assessment. The key words that are used by section 263 are that the order must be considered by the Commissioner to be erroneous in so far as it is prejudicial to the interests of the Revenue . This provision has been interpreted by the Supreme Court in several judgments to which it is now nece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ken by the Income-tax Officer is unsustainable in law. The principle which has been laid down in Malabar Industrial Co. Ltd. [2000] 243 ITR 83 (SC) has been followed and explained in a subsequent judgment of the Supreme Court in CIT v. Max India Ltd. [2007] 295 ITR 282. The principles laid down by the courts are that the Learned CIT cannot invoke his powers of revision under section 263 if the Assessing Officer has conducted enquiries and applied his mind and has taken a possible view of the matter. If there was any enquiry and a possible view is taken, it would not give occasion to the Commissioner to pass orders under section 263 of the Act, merely because he has a different opinion in the matter. The consideration of the Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0015 is furnished at page 58B of the paper book. According to Ld A.R, the assessee has furnished all the details relating to the above said three issues to the assessing officer and they are very much available in the e-portal of the department. We notice that the Ld PCIT has not considered these documents at all before arriving at the conclusion that the AO has not conducted proper enquiries. We have also perused the various case laws cited by Ld PCIT and notice that they lay down the principles governing the proceedings u/s 263 of the Act. 7. On a perusal of the various details furnished by the assessee to the assessing officer, we notice that the assessee has furnished necessary details before the AO with regard to the above said thre ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
