TMI Blog2023 (9) TMI 948X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the AR that the provision of section 56(2)(vii)(b) is not applicable to case of a company and that section 56(2)(x) which may apply to case of a company has been inserted by the Finance Act, 2017 w.e.f. 01.04.2017 and is accordingly applicable to AY 2018-19 and onwards whereas the case of the assessee company pertains to AY 2015-16. In this view of the matter, the direction of the PCIT is not sustainable, being not in accordance with law. Documentary evidence available in the records which the AO admits to have verified the veracity thereof amply demonstrate that the AO made the requisite enquiry. If that be so, a mere non-discussion or non-mention thereof in the assessment order could not lead to assumption that the AO did not appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he jurisdiction on this issue under Section 263 cannot be assumed. 4. On the facts and circumstances of the case, the learned Pr. CIT has erred both on facts and in law in rejecting the contention of the appellant that the issue of purchase of property raised by the him were before the AO in proceedings under Section 143(3) and was allowed after application of mind by him as such the same cannot be the matter for reassessment under Section 263 of the Act 5. On the facts and circumstances of the case, the learned Pr. CIT has erred both on facts and in law in ignoring the contention of the appellant that the proceeding under Section 263 cannot be used for substituting option of the A.O. by that of the Pr. CIT 6. On the facts an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te preceding year and genuineness thereof is not ascertained from assessment record; and that the genuineness of Fair Market Value ( FMV ) of property purchased is not ascertainable from the assessment records. He, therefore, issued notice to the assessee to show cause why the assessment be not treated as erroneous and prejudicial to the interest of Revenue. 4.1 The assessee submitted its reply. The Ld. PCIT accepted the explanation of the assessee on the issue of investment in the property and large increase in sundry creditors and their genuineness. However, on the issue of purchase of property for a consideration lower than the stamp duty value, the explanation of the assessee was not acceptable to him in the light of provisions conta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal in ITO vs. M/s. Sharan Svadha LLP 2022(10)TMI457 decided on 11.10.2022. 6.2 The Ld. AR submitted that the assessment order cannot be held as erroneous when the Ld. AO has examined the issue. Further, there is distinction between lack of inquiry and inadequate inquiry . He also submitted that the fact that the Ld. AO has not made elaborate discussion in assessment order cannot be a basis to invoke revisionary power under section 263 of the Act. Moreover, once a plausible view is taken by the Ld. AO, the Ld. PCIT cannot substitute his view to invoke the revisionary power under section 263 of the Act. In support of the above contentions reliance has been placed on numerous precedents. 6.3 According to the Ld. AR detailed enquir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at Narela Industrial Park and copy of comparable sale deed (pages 28-54 of Paper Book). The Ld. AO examined the veracity of the above details/documents during assessment proceedings and after being satisfied passed the assessment order accepting the declared income. The Ld. PCIT however issued notice under section 263 of the Act on the ground that investment details in property were not brought on record, large increase in sundry debtors and genuineness thereof and genuineness of FMV of property were not ascertained and therefore the assessment order was erroneous and prejudicial to the interest of the Revenue. On consideration of assessee s explanation given before the Ld. PCIT, he was satisfied on the issue of investment in property and l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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