2022 (10) TMI 1254 - AT - Income Tax

Revision u/s 263 initiated by Pr. CIT on the proposal submitted by the ACIT - HELD THAT - Tribunal in the case of Alfa Laval Lund AB 2021 (11) TMI 327 - ITAT PUNE quashed the order passed u/s. 263 of the Act on the proposal sent by the AO to the CIT. We note that the Tribunal held the CIT passing the order u/s. 263 of the Act on the proposal sent by the AO is a case of jurisdiction deficit which resulting into vitiating the impugned order Admittedly the Pr. CIT-5 Pune initiated proceedings u/s. 263 of the Act on the proposal sent by the Addl. CIT Range-9 Pune which is evident from impugned order and not suo motu calling for and examining the record of the assessment proceedings. Therefore revision jurisdiction exercised by the Pr. CIT u/s. 263 of the Act fails and it is set aside. Thus the grounds raised by the assessee are allowed.

Summary

The appeal was filed by the assessee against the order passed by the Pr. Commissioner of Income Tax-5, Pune for assessment year 2010-11. The issue was whether the Pr. CIT was justified in invoking jurisdiction u/s. 263 of the Act. The Tribunal found that the Pr. CIT initiated proceedings based on a proposal from the Addl. CIT, which was not valid. The Tribunal quashed the order u/s. 263, stating that the revision jurisdiction exercised by the Pr. CIT failed. As a result, the appeal of the assessee was allowed.