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Income Tax Appellate Tribunal, JAIPUR BENCHES, A JAIPUR
Before: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM
merits also the order of the ld. PCIT is not sustainable.
Based on the discussion recorded the bench noted that every inadequacy of the enquiry conducted by an AO as against the no enquiry cannot form a basis for setting aside an assessment order which has been passed by AO. In the instance case as discussed herein above the issue raised and ld. AO takes a plausible view so as to establish that on that issue the order is not erroneous. Thus, when based on the submission and discussion so recorded at is evident that the inquiry has been made and considering the submission of the assessee ld. AO considered the submission of the assessee and has not disallowed the interest as alleged by the based on the submission placed on record cannot be considered as erroneous and prejudicial to the interest of the revenue.
Therefore, the order passed by the ld. PCIT dated 21.03.2024 cannot be sustained in law merely because the original assessment order does not exactly advert to the issue which the ld. PCIT is seeing. Hence, the PCIT could not have exercised the powers conferred upon her u/s. 263 of the Act only on the reasons that she had a different view or perspective in the matter. The principle of law enunciated by the Supreme Court in Malabar Industrial Co. Ltd. has set up a standard concerning the width and amplitude of power vested for exercising revisionary jurisdiction under Section 263 of the Act. While exercising power under the said provision, the concerned officer must be satisfied that the twin conditions provided therein stand fulfilled, i.e., the order passed by the AO, which is sought to be revised, is erroneous and is also prejudicial to the interest of the revenue. In other words, if one of the two conditions is not satisfied, the revisionary power under the said provision cannot be invoked.
Ergo, we quash the order passed by the PCIT, Central Jaipur.
Order pronounced in the open court on 05/09/2024.