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TMI Blog2023 (4) TMI 1308X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessing officer and verified with the books of accounts and the heard copies of the ITR and audited accounts and thereafter, the assessment was completed. From the notice issued u/s 142(1) it is seen that as many as 21 particulars/documents were called upon to be produced by the assessee of which the document/observations in item No. 20-21 are relevant for the purpose of this case, they being (i) large increase in investment in unlisted equities during the year and (ii) low income in comparison to very high investment. It is seen that first issue on which the information was called for by the assessing officer has not been taken as a ground by the PCIT while assuming jurisdiction u/s 263. Thus it has to be seen as to whether assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 09.2017 the authorised representative of the assessee had appeared and produced the books of accounts, bills vouchers etc and they were test checked and the case was discussed with the authorised representative of the assessee. If that be so, it could not have been stated that there was any lack of enquiry on the part of the assessing officer. Tribunal also admits that a paper book containing 124 pages of documents were also placed. Thus it is a case where the assessing officer had raised specific query and the case was discussed with the authorised representative of the assessee and thereafter decision has been taken. Thus in absence of any satisfaction recorded by the PCIT that the order of assessment was both erroneous and prejudicial to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned Counsel for the appellant/assessee duly assisted by Mr. Brijesh Kr. Singh, learned Advocate and Mr. Tilak Mitra, learned standing Counsel for the respondent/revenue. 3. The short issue which falls for consideration is whether the Principal Commissioner of Income Tax 2, Kolkata (PCIT) was justified in exercising his power under Section 263 of the Act. On perusal of the order passed under Section 263 of the Act, it is seen that the proceedings were initiated based on a proposal received by the assessing officer. The PCIT would observe that on perusal of the said proposal of the assessing officer, prima facie, it appears that the assessing officer has failed to take a logical action on the information available with him. The statute i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n with regard to the second issue namely low income in comparison to very high investments. The assessee had placed before the assessing officer many submissions in which the detail explanation has been given with regard to the said issue apart from placing reliance on various decisions of the Hon ble Supreme Court as well as the High Courts. Apart from that, a separate reply had also been given on 21.09.2017 dealing with all the twenty-one issues. Thus it cannot be said that assessing officer did not conduct any enquiry in the matter with regard to the issue on which the PCIT had exercised jurisdiction under 263 of the Act. It may be true that a proposal had been received by the PCIT from the assessing officer. However, solely based on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T 9, Kolkata Vs. Reeta Lakmani; ITAT No. 129 of 2022 etc. dated 22.11.2022 and in PCIT 9 Vs. Satish Kumar Lakmani ; ITAT No. 112 of 2022 dated November 22, 2022. Though one of the decisions of this Court has been noted by the Tribunal, the reason assigned by the Tribunal for distinguishing the decision cannot be countenanced. Thus in absence of any satisfaction recorded by the PCIT that the order of assessment was both erroneous and prejudicial to the interest of revenue, the Tribunal ought to have granted relief to the assessee and faltered the PCIT for having exercised its jurisdiction. 5. For the above reason, the appeal filed by the assessee is allowed and the order passed by the Tribunal as well as the PCIT is set aside and the assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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