INCOME TAX ACT, 1961

Section 263

Revision under section 263 - Erroneous and prejudicial to the interests of revenue - -

A search under Section 132 was undertaken in a group concern and case of assessee was also included. The case was centralized and thereafter, a notice under Section 153A was issued. In the meantime, details of Revenue audit objection were communicated by the then AO to AO of the Central Circle Assessment was finalized and the order under Section 153A read with Section 143(3) was passed. CIT thought fit to invoke its revisional powers under Section 263 and conveyed in the order that there was no proper inquiry at the end of AO. Held: Tribunal had recorded a specific finding that during the search, nothing incriminating was recovered and AO made adequate inquiry in the case. It was not in dispute that during the course of framing of assessment, AO had access to all the records of assessee and after perusal of such records ultimately AO framed the assessment. Tribunal was right in its final conclusion that such assessment order could not have been taken into revision in exercise of revisional power under Section 263 as assessment order could not be said to be erroneous and prejudicial to the interests of the revenue.

REFERRED : Pr. CIT v. Saumya Construction Pvt. Ltd. (2016) 81 taxmann.com 292 (Guj.) : 2016 TaxPub(DT) 3466 (Guj-HC); CIT v. Amit Corpn. (2012) 81 CCH 0069 (Guj.) and Kalpeshkumar B. Verma v. Pr. CIT [ITA. No. 1244 & 1245/AHD/2018, dt. 18-2-2019].

FAVOUR : In assessee's favour.

A.Y. :

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