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| The Tax Publishers2020 TaxPub(DT) 1311 (Ahd-Trib) INCOME TAX ACT, 1961
Section 263
A perusal of questionnaire issued under section 142(1) clearly indicated that AO had not asked any question relating to issue entertained by CIT under in 263 proceedings. He has not inquired as to whether any capital gain arose to assessee and whether assessee had computed any deduction under section 54C/54E, etc. The questionnaire was totally silent. Thus, acceptance of accounting entry as it was without making any inquiry made assessment order erroneous and prejudicial.
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Revision undrs ection 263 - Erroneous and prejudicial order - Lack of enquiry on AO's part -
CIT invoked jurisdiction under section 263 and assessment order as erroneous as well as prejudicial to the interest of revenue on the ground of AO's failure to make enquiry as regards deduction claimed by assessee under section 54/54EC.Held: A perusal of questionnaire issued under section 142(1) clearly indicated that AO had not asked any question relating to issue entertained by CIT under 263 proceedings. He has not inquired as to whether any capital gain arose to assessee and whether assessee had computed any deduction under section 54C/54E, etc. The questionnaire was totally silent. Thus, acceptance of accounting entry as it was without making any inquiry made assessment order erroneous and prejudicial.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2011-12
IN THE ITAT, AHMEDABAD BENCH
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