9911796707
TMI Blog2022 (11) TMI 973X X X X Extracts X X X X X X X X Extracts X X X X ..... are being disposed of by this common order, for the sake of convenience. 2. The facts relating to the case are stated in brief. The assessee was subjected to search on 14-03-2018. Consequent to the search operations, the AO completed the assessments of both the years under consideration u/s. 143(3) r.w.s 153A of the Act on 20.12.2019. (In the assessment order, the AO has mentioned the section as 143(3) r.w.s 153B(1)(a) of the Act). The Ld. PCIT, upon examination of assessment records both the years, took the view that the assessing officer has not conducted proper enquiries/verification while passing the assessment orders. Accordingly, he initiated revision proceedings u/s. 263 of the Act. 3. We shall first take up the revision order pas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court in the case of CIT vs. Kabul Chawla (2016) 380 ITR 573)(Delhi), it was submitted that, in case of unabated assessments, the assessment should be confined only to the material found during the course of search. On merits, it was submitted that the assessee had taken new loans from five parties only and all other loans were old balances. It was submitted that all the five parties are assessed to income tax. Accordingly, it was submitted that this issue was examined by the AO on merits. 5. The Ld. A.R submitted that, in order to verify the submissions made by the assessee, the Ld. PCIT called for a remand report from the assessing officer in respect of above said submissions and the AO has also furnished remand report confirming th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ., the order is not only erroneous, but it should also be prejudicial to the interests of revenue. Merely because, the Ld. PCIT has initiated revision proceedings, he cannot set aside the assessment order for doing assessment de-nova on the issues on which the revision proceeding was initiated. This view gets support from the decision rendered by Hon'ble Delhi High Court in the case of CIT vs. Nagesh Knitwears (P) Ltd. (2012) 345 ITR 135/210), wherein it was held as under:- "Thus, in cases of wrong opinion or finding on merits, the Commissioner of Income tax has to come to the conclusion and himself decide that the order is erroneous, by conducting necessary enquiry, if required and necessary, before the order under section 263 is pas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decided whether or not the order is erroneous but has directed the Assessing officer to decide the aspect/question...." The law interpreted by the Hon'ble Delhi High Court makes it clear that the Ld. PCIT, before holding an order to be erroneous, should have conducted necessary enquiries or verification in order to show that the finding given by the assessing officer is erroneous and further the Ld. PCIT should have shown that the view taken by the AO is unsustainable in law. 8. In the instant case, the Ld. PCIT has initiated the revision proceedings on the impression that the assessee has not disclosed the sale transactions of two properties. It was shown by the assessee that the properties belonged to a partnership firm, in which he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... und during the course of search. It is the submission of the assessee that no incriminating material relating to sundry creditors was found. In that case, the AO could not have made any addition out of unsecured creditors. When the AO is disabled to make any addition, in our view, the Ld. PCIT also cannot probe on that issue. However, on merits, the assessee has submitted that it has taken fresh loan from five parties only during the year under consideration. Other loans are brought forward from earlier year. It is submitted that the assessee has furnished the details of five parties along with their confirmation letters, which also contained PAN number. Leaving aside the question as to whether the enquiry so made by the AO on merits in res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by considering various details furnished by the assessee. Hence Ld. PCIT called for a remand report from the AO, who also confirmed that the relevant details were furnished during the course of assessment. After considering the reply and the remand report of the AO, the Ld. PCIT made following confusing observations in this year also:- "....I have examined the facts as obtaining and the assessing officers report. I find that in these revision proceedings, these facts have not been examined. I also note that the taxpayer's averments cannot also be denied outright. The taxpayer's averments may also be correct. However, all these require examination by the assessing officer. Further, from the assessing officers report dated 15.02.202 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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