TMI Blog2023 (11) TMI 581X X X X Extracts X X X X X X X X Extracts X X X X ..... planation-2 is being sought to be invoked by the Ld. PCIT by stating that in the opinion of the Ld. PCIT, the requisite enquiries had not been carried out by the Ld. AO, then it is bounden duty of the Ld. PCIT to atleast state what are the requisite enquiries that are to be carried out by the Ld. AO and where the Ld. AO has failed in his duty. In the instant case, no such recording of facts and no finding thereon is given by the Ld. PCIT in his order with objective reasons. Thus more than adequate enquiries were indeed made by the Ld. AO while completing the assessment and if the Ld. PCIT is of the opinion that the enquiries carried out by the Ld. AO were inadequate, then it is the duty of the Ld. PCIT to conduct an enquiry before proceeding to treat the order of the Ld. AO as erroneous. Thus no hesitation in quashing the revision order passed by the Ld. PCIT u/s 263 - Decided in favour of assessee. - SHRI SAKTIJIT DEY, VICE PRESIDENT AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER For the Appellant : Mr. Tarandeep Singh, Advocate For the Respondent : Mr. Sapna Bhatia, CIT- DR ORDER PER M. BALAGANESH AM: This appeal of the Assessee arises out of the ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d on 30/09/2015 declaring total income of Rs. 1,83,48,420/-. The assessment was completed u/s 143(3) of the Act on 27/04/2017 accepting the returned income. This assessment was sought to be revised by the Ld. PCIT by invoking revision jurisdiction u/d 263 of the Act by treating the order of the Ld. AO as erroneous in as much as it is prejudicial to the interest of the Revenue. A show cause notice issued by the Ld. PCIT on 03/02/2021 u/s 263 of the Act is enclosed in page 1 to 2 of the PB. The main crux of the show cause notice is that the assessee has claimed total expenditure of Rs. 58,23,64,185/- on account of Event, Package Tour, Service Fees and Sale of Air Ticket expenses. In the opinion of the Ld. PCIT, the assessee has merely furnished the ledger copy of these expenses which were allowed by the Ld. AO without making any enquiry and verification. Accordingly, the Ld. PCIT treated the order of the AO as erroneous and prejudicial to the interest of the Revenue. 5. The assessee prima-facie objected to the assumption of jurisdiction by the Ld. PCIT u/s 263 of the Act on the ground that adequate enquiries were indeed made by the Ld. AO during the course of assessment proceeding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... age Tour and Sale of Air Tickets; (b) Details of events, Package Tours, Service Fees and Sale of Air Tickets expenses. In the case of events where expenses were incurred in excess of Rs. 100 lacs, the assessee has also furnished details of entries of Tax Deduction at Source (TDS) thereon. (c ) The assessee also referred to the relevant annexures of tax audit report and also furnished the TDS returns filed to corroborate the transactions reflected in the tax audit report. (d) The books of account were also produced for verification of the Ld. AO. 7. From the aforesaid details more particularly the details of various expenses in tabular form enclosed in pages 21 to 22 of PB, we find that the assessee had given the nature of expenditure, the entire details of the client for whom the said expenditure has been incurred; expenditure incurred on the various heads together with the respective amounts thereon. Hence, it is clear that assessee had furnished the client wise income and corresponding expenses incurred thereon client wise, before the Ld. AO. The Ld. AO after making enquiries of the same and being satisfied with the details furnished by the assessee, concluded that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave already observed herein above that adequate enquiries were indeed carried out by the Ld. AO in the assessment proceedings with regard to the impugned expenditure of Events, Package Tours, Service Fees, Sale of Air Tickets expenses etc. Now, when enquires were already made by the Ld. AO while framing the assessment, if the Ld. PCIT is of the opinion that the enquiries carried out by the Ld. AO were inadequate, then it is the duty of the Ld. PCIT to conduct an enquiry before proceeding to treat the order of the Ld. AO as erroneous. Reliance in this regard is placed on the decision of Hon ble Jurisdictional High Court in the case of ITO vs. D.G. Housing Projects Ltd. reported in 343 ITR 329 (Del.), wherein it was observed as under: 16. Thus, in cases of wrong opinion or finding on merits, the CIT has to come to the conclusion and himself decide that the order is erroneous, by conducting necessary enquiry, if required and necessary, before the order under Section 263 is passed. In such cases, the order of the Assessing Officer will be erroneous because the order passed is not sustainable in law and the said finding must be recorded. CIT cannot remand the matter to the Assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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