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| The Tax Publishers2020 TaxPub(DT) 2056 (Chd-Trib) INCOME TAX ACT, 1961
Section 263
Once a point wise reply was given by assessee, then, a duty was cast upon PCIT to examine reply of assessee and to make or cause to make necessary inquires to reach to the conclusion that order of AO was erroneous so far as it was prejudicial to the interest of Revenue. As PCIT failed to make any observation as to why he did not get satisfied from reply of assessee on the concerned issue, order passed under 263 could not be sustained.
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Revision under section 263 - Erroneous and prejudicial order - Pr. CIT failed to make any observation as to why he did not get satisfied from reply of assessee on impugned issue -
PCIT held assessment order as erroneous and prejudicial to the interest of revenue on the ground od AO not having examine interest ferr advances given by the assesse to its sister concern.Held: Assessee duly explained to PCIT that amount of capital of assessee and interest free funds of assessee were much more than interest free advance given to sister concern. PCIT failed to make any observation as to why he did not get satisfied from reply of assessee on this point. Once a point wise reply was given by assessee, then, a duty was cast upon PCIT to examine reply of assessee and to make or cause to make necessary inquires to reach to the conclusion that order of AO was erroneous so far as it was prejudicial to the interest of Revenue. Accordingly, order passed under 263 could not be sustained.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
IN THE ITAT, CHANDIGARH BENCH
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