The Tax Publishers2020 TaxPub(DT) 2751 (Del-Trib) : (2020) 079 ITR (Trib) 0119

INCOME TAX ACT, 1961

Section 263

Action under section 263 could be taken only when there is lack of enquiry or no enquiry and merely because Pr.CIT did not agree with the manner of enquiry conducted by AO as regards information received from investigation wing as to assessee having received bogus loans from alleged entry operators, he could not substitute his own reasons and held the order to be erroneous and prejudicial to the interest of revenue when AO during the course of assessment proceedings had called for information from the assessee, who filed the requisite documents such as the ITR, bank statement, PAN number, confirmation etc. of the lender company.

Revision under section 263 - Erroneous and prejudicial order - Necessary enquiry made by AO -

Pr.CIT held assessment order as erroneous and prejudicial to the interest of revenue on the ground of AO not having made enquiry as regards information received from investigation wing as to assessee having received bogus loans from alleged entry operators.Held: As evident, AO in the instant case has reopened assessment on the basis of information received from investigation wing that assessee had received accommodation entry of Rs. 40 lacs from M/s. Sri Amarnath Finance (P) Ltd., a company controlled by Sh. Surinder Kumar Jain and Sh. Virender Kumar Jain who were known entry operators. Also AO during the course of assessment proceedings had called for information from the assessee, who filed the requisite documents such as the ITR, bank statement, PAN number, confirmation etc. of the lender company. Also, AO had issued notice under section 133 (6) to M/s. Sri Amarnath Finance (P) Ltd. who responded to such notice and filed requisite documents as called for by AO . Therefore, AO had examined documents/confirmation in detail and adopted a possible view that assessee had established the identity and creditworthiness of the lender and the genuineness of transaction. Action under section 263 could be taken only when there is lack of enquiry or no enquiry. However, in the instant case necessary enquiry was conducted. Therefore, merely because Pr.CIT did not agree with the manner of enquiry conducted by AO he could not substitute his own reasons and held the order to be erroneous and prejudicial to the interest of revenue.

Followed:?Dwarkadhish Buildwell Private Ltd. v. CIT (2019) 109 Taxman.com 5 (Del) : 2019 TaxPub(DT) 5897 (Del-Trib).

REFERRED :

FAVOUR : In assesse's favour.

A.Y. : 2009-10

IN THE ITAT, DELHI BENCH

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