INCOME TAX ACT, 1961

Section 263

Revision under section 263 - AO did not conduct enquiries for deduction claimed under section 80P - Direction of PCIT for fresh examination of matter whether justified -

Pursuant to assessment framed under section 143(3), AO allowed deduction claimed under section 80P to assessee. PCIT alleged that AO passed order without conducting enquiries or verifications, and he set aside order passed under section 143(3) and directed AO for fresh examination in respect of incomes and claims. Held: It was found that AO issued notice under section 142(1) along with questionnaire, but there were no findings or observations of AO that he conducted enquiries in respect of income and claims made by assessee. Fact remained that order passed by AO prima facie, was without conduct of Enquiry. AO could not conduct enquiry into income and claims made by assessee nor it could demonstrate with evidences that AO conducted the enquiry. Since AO passed assessment order without conducting enquiries or verifications, and PCIT set aside the order passed under section 143(3) by AO and directed him for fresh examination in respect of incomes and claims, therefore, no interference in revision order of PCIT was warranted.

Followed:Malini Subramanian v. PCIT [ITA No.935/Bang/2016, dt.27-9-2019]; M/s Mysore Minerals Ltd. v. CIT [ITA No.464/Bang/2014 Dt.25-1-2019] : 2019 TaxPub(DT) 3921 (Bang-Trib)

REFERRED :

FAVOUR : Against the assessee

A.Y. :

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