The Income Tax Appellate Tribunal (ITAT), Kolkata bench comprising the Sri Manish Borad, Accountant Member & Sri Sonjoy Sarma, Judicial Member has held that the revisional jurisdiction under section 263 of the Income Tax Act, 1961 cannot be invoked when the Assessing Officer completed the assessment after conducting necessary inquiry and examination of facts.
The assessee, Mr. Sujith Kumar Dey, an individual, declared an income of Rs. 10,13,620/- for the relevant period of assessment. Case selected for scrutiny for the reason to verify “whether the investment and income relating to property disclosed”. While concluding the proceedings, the AO concluded the assessment accepting the returned income vide assessment order dated 24.12.2018 passed under section 143(3) of the Act.
The Tribunal held that the issue raised in the show cause notice has been examined properly by the AO after conducting necessary enquiry and has also examined the facts properly their hardly remains any scope for ld. PCIT to exercise jurisdiction under section 263 of the Act.
“Therefore, since the ld. AO has made necessary enquiry, applied his mind on the issue, examined the facts properly and has taken a possible view, we cannot agree with the finding of the ld. PCIT of setting aside the assessment order. Accordingly, the proceedings u/s 263 of the Act are quashed and the assessment order dated 24.12.2018 u/s 143(3) of the Act is restored. Thus, all the grounds raised by the assessee are allowed,” the Tribunal said.
Sh. S.M. Surana, Adv. & Sh. Sunil Surana, CA, appeared on behalf of the Assessee. Sh. Sudipta Guha, CIT (D/R), appeared on behalf of the Revenue.
Σχόλια