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| The Tax Publishers2021 TaxPub(DT) 6614 (Jod-Trib) INCOME TAX ACT, 1961
Section 263
Assessee furnished all information as asked for by AO during the course of assessment proceedings which was duly considered by Act as evident from the assessment order. AO had issued detailed questionnaire raising various issues which were also replied by assessee from time to time. Assessee also appeared personally and filed detailed replies to all the queries raised and books of account were also produced. Pr. CIT failed to specify as to how and on what ground the assessment order was erroneous and/or which part of the CBDT instructions was not adhered to by AO. Merely not recording the satisfaction by AO on the records did not make the assessment order erroneous and prejudicial to the interest of revenue. Even in terms of CBDT Instruction No 3/2016 it was not mandatory for AO to make reference to TPO in assessee's case. Therefore, order passed under section 263 was set aside.
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Revision under section 263 - Erroneous and prejudicial order - No lack of enquiry on AO's part -
Pr. CIT held the original assessment order to be erroneous and prejudicial to revenue on the ground that there were large outward remittance to a non-resident not being a company or to a foreign company for which Form 15CA was issued and that the query raised by AO in its letter dated 10-9-2018 for which reply submitted by assessee was not properly examined. Held: Assessee furnished all information as asked for by AO during the course of assessment proceedings which was duly considered by Act as evident from the assessment order. AO had issued detailed questionnaire raising various issues which were also replied by assessee from time to time. Assessee also appeared personally and filed detailed replies to all the queries raised and books of account were also produced. Pr.CIT failed to specify as to how and on what ground the assessment order was erroneous and/or which part of the CBDT instructions was not adhered to by AO. Merely not recording the satisfaction by AO on the records did not make the assessment order erroneous and prejudicial to the interest of revenue. Even in terms of CBDT Instruction No 3/2016, it was not mandatory for AO to make reference to TPO in assessee's case. Therefore, order passed under section 263 was set aside.
Relied:Amira Pure Foods Private Limited v. Pr. CIT ITA No. 3205/Del/2017 : 2017 TaxPub(DT) 5413 (Del-Trib), Delhi Airport Metro Express Ltd. (2017) 398 ITR 8 (Del-HC) : 2017 TaxPub(DT) 4058 (Del-HC)
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2016-17
IN THE ITAT, JODHPUR BECNH
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