The Tax Publishers2020 TaxPub(DT) 5400 (Del-Trib)

INCOME TAX ACT, 1961

Section 263

Where CIT exercised revisional jurisdiction under section 263 on the ground of AO not having made proper inquiries before accepting sundry creditors without noticing the fact that confirmations were received from 16 sundry creditors obtained by assessee and submitted to AO, impugned order passed under section 263 in a routine manner without CIT having applied his mind on the issue was set aside.

Revision under section 263 - Erroneous and prejudicial order - No application of mind by CIT -

CIT exercised revisional jurisdiction under section 263 on the ground of AO not having made proper inquiries before accepting sundry creditors shown at Rs. 1,94,77,814; and not having called for confirmations from even sundry creditors which were above Rs. 1 lakh. Held: Confirmations were received from 16 sundry creditors obtained by assessee and submitted to AO. These confirmations of sundry creditors were not noticed by CIT during proceedings under section 263, hence, it could be said that CIT had not applied his mind and passed impugned order in a routine manner. Accordingly, order under section 63 was set aside.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2008-09


INCOME TAX ACT, 1961

Section 263

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