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Facts
The assessee appealed against the PCIT's revision order under section 263 of the Income Tax Act, 1961. The PCIT directed revision of the Assessing Officer's assessment, citing lack of detailed enquiries regarding land advance and agricultural income, and mismatch in sales turnover and capital increase.
Held
The Tribunal held that the Assessing Officer's assessment, conducted under limited scrutiny, was neither erroneous nor prejudicial to the revenue. The PCIT's revision order was deemed to have erred in law and facts.
Key Issues
Whether the PCIT's revision under Section 263 was justified given the limited scrutiny conducted by the Assessing Officer.
Sections Cited
263
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Income Tax Appellate Tribunal, DELHI BENCH ‘F’, NEW DELHI
Before: Sh. Satbeer Singh Godara & Sh. Naveen Chandra
ORDER
Per Satbeer Singh Godara, Judicial Member:
This assessee’s appeal for Assessment Year 2015-16 arises against the PCIT, Dehradun’s DIN & order No. ITBA/REV/F/REV5/2020-21/1031618340(1) dated 19.03.2021, in proceedings u/s 263 of the Income Tax Act, 1961 (in short “the Act”).
Heard both the parties at length. Case file perused.
It transpires during the course of hearing that the assessee/appellant is aggrieved against the learned PCIT’s section 263 revision directions holding the Assessing Officer’s regular assessment framed on 15.11.2017; as an erroneous one, since having not carried out the necessary detailed enquiries regarding land advance(s) received to Rs.75,00,000/- and agricultural income, involving varying sums, respectively.
It is in this factual backdrop that we notice from the learned PCIT’s revision order itself at page 1 that the assessee’s case involved “limited” scrutiny inter alia regarding the twin issues of mismatch in sales turnover and substantial increase in capital than that of advances received and agricultural income (supra). That being the case, we are of the considered view in this factual backdrop that once the Assessing Officer could not have travelled beyond the scope of limited scrutiny, his regular assessment framed on 15.11.2017 could neither be termed as an an erroneous one nor that causing prejudice to the interest of the Revenue going by PCIT vs. Weilburger Coatings (India) (P.) Ltd (2023) 155 taxmann.com 580 (Cal). We thus hold that the learned PCIT has erred in law and on facts in exercising his section 263 revision jurisdiction in the facts involved in the assessee’s case; in very terms. The same stands reversed therefore.