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TMI Blog2022 (7) TMI 1109X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment and assessment order was passed after detailed submissions made by assessee were duly accepted. Mere non-mentioning of specific reasons for accepting explanation of assessee by AO in assessment order could not be reason to invoke revisionary powers under section263. PCIT had invoked the section 263 which is beyond the jurisdiction. Appeal of the assessee is allowed. - I. T. A. No. 301/Asr/2017 - - - Dated:- 14-7-2022 - DR. M. L. MEENA , ACCOUNTANT MEMBER AND SH. ANIKESH BANERJEE , JUDICIAL MEMBER Appellant by : Sh. P. N. Arora , Adv. Respondent by : Sh. Sunil Gautam , CIT DR ORDER Per Anikesh Banerjee , JM : The instant appeal was filed by the assessee against the order passed by the Ld. Pr. Commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly be quashed. 3. That the orders of assessment passed by the Assessing officer, Range-3, Ferozepur has been amalgamated in the orders of the CIT(A), on account of the appellate orders passed on 29.3.2017 on account of the expenditure as discussed in the para 2 of the assessment orders dated 25.3.2015 by the Assessing officer- Range-3, Ferozepur in which Assessing Officer has made the addition to the tune of Rs.4,00,000/- after having glance over the vouchers that the some vouchers are handmade vouchers and which are not verifiable as per version of the assessing officer being one sided version. 4. That there is no loss of revenue if the computation is made by reducing the depreciation as per companies and not as the Income Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. AO in relation to the genuinity of the transaction. Accordingly, the order of the AO is erroneous and prejudicial to the interest of the Revenue, so the order of the Ld. AO was setting aside for further verification. Aggrieved, the assessee filed an appeal before us. 4. During hearing the Ld. counsel of the assessee vehemently argued that took our attention in the paper book filed on 29.10.2018 pertaining page no. 10 to 176 in page nos. 23 and 24, the notice u/s 263(1) is annexed. The requisition of the Ld. Pr. CIT related to payment of expenses was already covered in the assessment order. The calculation of WDV of machinery was already filed during the assessment proceedings. The company is maintaining two types of depreciation as pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccepted the assessee s claim, then, the CIT in the garb of his revisional jurisdiction u/s 263 of the Act cannot direct the AO to carry out a fuller enquiry, is supported by the judgment of the Hon ble High Court of Bombay in the case of CIT, Central-III v. Nirav Modi [2017] 390 ITR 292 (Bombay). In the aforesaid case, the AO after making a proper and detailed inquiry had formed a view that the amount received by the assessee as a gift from his relative was a genuine transaction. However, the CIT set-aside the order passed by the AO, with a direction to inquire into the capacity of the donors and therein decide about the genuineness of the gift transaction afresh. On appeal, it was, inter alia, observed by the Hon ble High Court, that where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s raised by AO in scrutiny assessment and assessment order was passed after detailed submissions made by assessee were duly accepted. Mere non-mentioning of specific reasons for accepting explanation of assessee by AO in assessment order could not be reason to invoke revisionary powers under section263. We respectfully relied on the order of ITAT, Mumbai Bench in the case of Reliance Payment Solutions Ltd. v. Principal Commissioner of Income-tax-8, [2022] 136 taxmann.com 277 (Mumbai - Trib.). 9. Clearly, therefore, 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 i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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