ITAT Upholds Revisionary Order by AO on ground of Twin Satisfaction Envisaged u/s 263 of Income Tax Act [Read Order]

The Pune bench of the Income Tax Appellate Tribunal (ITAT) upheld the revisionary order passed by the assessing officer on the ground of twin satisfaction envisaged under section 263 of the Income Tax Act,1961. 

Abhishek Sheti Udyog Bhandar, the appellant assessee filed the return of income(ROI). The assessing officer decided once the matter and identified that necessary documents were not verified in the primary assessment and the assessing officer revise the assessment process and passed revisionary order under section 263 of the Income Tax Act. 

Thus the assessee appealed against the revisionary order passed by the assessing officer under section 263 of the Income Tax Act. 

Pramod Shingte, the counsel for the assessee contended that while framing an assessment under section 143(3) of the Income Tax Act, the assessment officer failed to make due verification and inquiries into such deposits and report thereon in terms of subjective circulars, instructions, and internal guidance notes. 

It was also submitted that the specific requirement detailed submission was made and duly considered by the assessing officer before framing assessment under section 143(3) of the Income Tax Act, hence the exercise of revisionary jurisdiction was unwarranted and did not inspire any confidence. 

Keyur Patel, the counsel for the revenue contended that for collecting general information concerning deposits had cheerlessly failed to carry out inquiries and also failed to file a report, thereon for the very reason without a shadow of a doubt the assessment rendered erroneous and prejudicial to the interest of the revenue the exercise of revisionary jurisdiction was justified and needs to be upheld. 

The two-member bench comprising S.S Godara (Judicial) and G. D. Padmahshali (Accountant) held that no inquiries into the substantial deposits at the first instance and further failure to carry out analysis in terms of directions were adequately sufficient to attract twin satisfaction as envisaged under section 263 of the Income Tax Act. 

It was also held that the revisionary power done by the assessing officer under section 263 of the Income Tax Act was as per the law and is not liable to be deleted while dismissing the appeal filed by the assessee. 

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates