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Facts
The assessee challenged an assessment order before the CIT(A). However, before that appeal was adjudicated, the PCIT passed an order under Section 263 of the Act, setting aside the assessment order in part. The PCIT directed the Assessing Officer to verify the issue of cash deposits, citing defects in the original assessment order.
Held
The Tribunal held that the PCIT erred in setting aside the assessment order on the issue of cash deposits. The Tribunal found that the assessment order could not be termed erroneous as per Section 263 read with Explanation 2. The PCIT did not conduct independent inquiry and merely differed with the Assessing Officer's view based on the same material.
Key Issues
Whether the PCIT's order under Section 263, setting aside the assessment order based on a difference of opinion with the AO, was justified without conducting independent inquiry? Whether the assessment order was erroneous and prejudicial to the interest of revenue.
Sections Cited
263, 68, 10
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Income Tax Appellate Tribunal, JAIPUR BENCHES,”B-Bench” JAIPUR
Before: SHRIGAGAN GOYAL, AM& SHRI NARINDER KUMAR, JM
In view of the above discussion, we find that the assessment order could not be termed to be erroneous in view of the provisions of section 263 read with Explanation 2 thereof, and as such, hold that Learned PCIT
As a result, this appeal filed by the assessee is allowed. File be consigned to the record room after the needful is done by the office. Order pronounced in the open court on 13/11/2025.