TMI Blog2023 (9) TMI 1343X X X X Extracts X X X X X X X X Extracts X X X X ..... icer had conducted sufficient inquiry and examined the eligibility to claim deduction under section 10AA of the Act. It was not a case of no inquiry or lack of inquiry . When an opinion is formed as a result of the inquiries, which was in the exclusive domain of the Assessing Officer, it is not open for the revisional authority to arrive at conclusions merely on the basis of a subjective exercise. Thus as perused the order of the Tribunal, no substantial questions of law arise. - HONOURABLE MR. JUSTICE BIREN VAISHNAV AND HONOURABLE MR. JUSTICE BHARGAV D. KARIA Appearance: For the Appellant(s) No. 1 : Mrs Kalpana K Raval(1046) For the Opponent(s) No. 1 ORAL ORDER (PER : HONOURABLE MR. JUSTICE BIREN VAISHNAV) 1. This tax appeal is filed und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 'ble ITAT has erred in relying upon the decision of the ITAT Kolkata in the case of (1) Smt. Juthika Kar vs. ITO [ . . . No.1128/ . . . No.1128/ Kol/ 2009, dated 16.5.2012] and (2) CIT vs. J.L. Morrison (India) Ltd. (2014) 366 ITR 593 (Cal) quashing the impugned order u/s. 263 of the I.T. Act and allowing all the grounds of the Assessee without considering that the said decisions are prior to 01.06.2015, when Explanation 2 to section 263 was brought in the statute and the same was not considered in those decisions? (iv) Whether on the facts and Circumstances of the case and in law, the order of the Hon'ble ITAT is perverse in holding that the exercise of jurisdiction u/s 263 by the PCIT was wholly erroneous since the AO has examined ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith ING Vysya Bank. This was not disclosed in the ITR filed for the assessment year 2012-13. In the assessment proceedings, the Assessing Officer had not made any inquiry and therefore the order was erroneous insofar as it was prejudicial to the interest of revenue. 3.2 A show cause notice was issued and thereafter the order dated 31.12.2019 was set aside with a direction to the Assessing Officer to reframe the assessment. The assessee challenged the correctness of the order of the revisional authority dated 18.02.2022. The Tribunal by the order impugned held that there was no reason for the Principal CIT to exercise powers under section 263 of the Act as it was a case where it could not be said that the Assessing Officer had passed an orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er passed by the assessing officer cannot be termed as erroneous and prejudicial to the interest of revenue. We also note that assessing officer had with him copy of said bank account at the time of reopening of assessment under section 147 of the Act, as the reasons were recorded by AO based on the copy of the said bank statement. Therefore, entries in the said bank statement were examined by the AO in the reassessment proceedings and AO has applied his mind also. 26. We are aware of the fact that the Assessing Officer s role while framing an assessment is not only an adjudicator. The AO has a dual role to dispense with i.e. he is an investigator as well as an adjudicator; therefore, if he fails in any one of the role as afore-stated, his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore, the very initiation of proceeding u/s. 263 of the Act by the Ld. Pr. C.I.T. is in violation of the settled position in law. When the conditions precedent for invoking revisional power u/s 263 of the Act on the facts and in the circumstances of the case are not fulfilled in the case of the assessee, the subsequent action in passing the order u/s. 263 on such invalid proceeding becomes null and void. ... 27. It would further be evident from the above given facts that the assumption of jurisdiction u/s. 263 by the Ld. Pr. C.I.T. and consequential direction to the A.O. to impose his own understanding on the issue in question resulted in almost no change in follow-up action by the A.O. Therefore, it goes to establish that the proceedin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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