TMI Blog2021 (10) TMI 1385X X X X Extracts X X X X X X X X Extracts X X X X ..... ion, where there appears to be inadequacy to the PCIT in the manner of enquiry, he himself should embark upon some enquiries to discover the possibility of error. A roving enquiry cannot be directed summarily. The action of the PCIT is unsustainable in law without objectively showing how the order of the AO is erroneous. The revisional direction, in the instant case, is thus unsustainable in law. We also find merit in the plea of the assessee that having regard to CBDT instruction Nos. 7/2015, 20/2015 5/2016 and also CBDT letter dated 30.11.2017, the AO was not entitled to go beyond the reasons for selection of matter for limited scrutiny. As a corollary, it is not open to the PCIT to pass revisionary order and remit the matter to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of jurisdiction by the PCIT under section 263 of the Act on the ground that the Assessment Order under revision is neither erroneous nor prejudicial to the interest of the Revenue. 3. Briefly stated, the assessee filed its return of income for A.Y. 2015-16 in question declaring total income at Rs.2,00,800/-. The return filed was subjected to limited scrutiny assessment by issue of notice under section 143(2) and 142(1) of the Act and the return filed by the assessee was assessed as such. 4. Thereafter, the PCIT in exercise of revisionary powers, issued show cause notice dated 26.02.2020 to show cause why the assessment so framed under section 143(3) should not be modified/set aside on the ground that such order is erroneous in so fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he source of purchase of property was explained to be existing cash in hand accumulated tide earlier financial year amounting to Rs.13.45 Lakhs as shown in the balance sheet; agricultural income Rs.2.03 Lakhs and advances received on sale of land Rs.5Lakhs for which copy of sale deed and agreement executed was also presented before the AO. Having regard to these facts, the AO acted reasonably and accepted the bonafides after proper application of mind. The PCIT has pointed out the lapses in the assessment disregarding the scope of limited scrutiny and has attempted to expand the scope of enquiry in s.263 proceedings. For instance, creditworthiness of co-purchasers, agricultural income, examination of capital gains etc. could not have been m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ional order to direct the AO to make some fuller and extended enquiry desired in the opinion of the revisional authority. In such a situation, where there appears to be inadequacy to the PCIT in the manner of enquiry, he himself should embark upon some enquiries to discover the possibility of error. A roving enquiry cannot be directed summarily. The action of the PCIT is unsustainable in law without objectively showing how the order of the AO is erroneous. The revisional direction, in the instant case, is thus unsustainable in law. 10. We also find merit in the plea of the assessee that having regard to CBDT instruction Nos. 7/2015, 20/2015 5/2016 and also CBDT letter dated 30.11.2017, the AO was not entitled to go beyond the reasons f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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