The Income Tax Appellate Tribunal, Mumbai bench, while granting relief to M/s Reliance Payment Solutions Pvt Ltd, held that the revisional jurisdiction under section 263 of the Income Tax Act, 1961 cannot be invoked merely because the assessment order was passed without specifying any reasons.
the assessee is engaged in the business of “operation of semi closed prepaid instrument by the RBI”. In the assessment order, however, the Assessing Officer did not make any observations on this aspect of the matter. The Principal Commissioner initiated the revision proceedings under section 263 by invoking this reason.
Relying on a catena of decisions, the Tribunal bench comprising Pramod Kumar, Vice President and Kuldip Singh, Judicial Member has held that as long as the action of the Assessing Officer cannot be said to be lacking bonafides, his action in accepting an explanation of the assessee cannot be faulted merely because it could have been lawful to make mere detailed inquiries or because he did not write specific reasons of accepting the explanation.
“As for learned PCIT‟s observations regarding accepting the explanation “without appropriate evidence”, there is nothing to question the bonfides of the Assessing Officer or to elaborate as to what should have been „appropriate‟ evidence. The fact remains that the specific issue raised, in the revision order was specifically looked into, detailed submissions were made and these submissions were duly accepted by the Assessing Officer. Merely because the Assessing Officer did not write specific reasons for accepting the explanation of the assessee cannot be reason enough to invoke powers under section 263, and non-mentioning of these reasons do not render the assessment order “erroneous and prejudicial to the interest of the revenue,” the bench said.
Kommentare