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| The Tax Publishers2020 TaxPub(DT) 4520 (Ind-Trib) INCOME TAX ACT, 1961
Section 263
Where AO failed to examine issue as regards admissibility of agricultural income, Pr. CIT rightly directed AO in terms of section 263 to examine said issue but PCIT was not justified in directing AO to frame de novo assessment because other issues/additions were already deleted by Tribunal in appeal proceedings. Accordingly direction of PCIT was restricted only to extent of examining issue of admissibility of agricultural income, and not to other issues already dealt by AO.
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Revision under section 263 - AO failed to examine issue as regards admissibility of agricultural income - Direction issued to frame de novo assessment, whether justified -
Assessee contended that Pr. CIT erred in invoking provisions of section 263 and setting aside order of assessment to be framed de novo. Assessee contended that allegation of Pr. CIT alleged that claim of agricultural income was accepted by AO in original assessment proceeding without any verification. Held: It was an admitted fact that issue as regards claim of agricultural income was not examined by AO, and Pr.CIT rightly directed AO to examine said issue. However, direction for framing de novo assessment was not justified since additions made in assessment proceedings under section 143(3) travelled up to Tribunal, wherein said additions (lease rent and disallowance of corporate expenses) were deleted. Thus, order passed under section 263 was modified and direction of Pr. CIT to AO should be restricted only to extent of examining issue of admissibility of agricultural income, and not to other issues already dealt by AO.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2014-15
IN THE ITAT, INDORE BENCH
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