Revisional Order should be in Detail, Enriched with Facts: ITAT quashes Non-Speaking Order [Read Order]

The Amritsar bench of the Income Tax Appellate Tribunal (ITAT) while quashing a revisional order, has held that the order under section 263 of the Income Tax Act, 1961 shall be a speaking order which shall be in detail, enriched with facts.

The department initiated the proceedings under section 263 against the order of the Income Tax Officer passed under section 143(3) of the Act against the assessee, Rajdhani Transport Company Pvt. Ltd. The show cause notices were issued to the assessee and it was later confirmed.

The assessee contended that the same was not a speaking order.

After analysing the facts and arguments in detail, the Tribunal bench consists of Dr. M. L. Meena, Accountant Member and Sh. Anikesh Banerjee, Judicial Member has held that the order was passed only on the basis of the non-appearance of assessee and non-submission of the document during the proceeding.

Quashing the order, the Tribunal held that “Section 263 is moved up by two limbs, one erroneous order and second is prejudicial to the interest of the revenue. The ld. PCIT had not taken proper cognizance to discuss the issue and applicability of section 263 in relation to the order of the ld. Assessing Officer. A non speaking order was passed. The ld. CIT-DR also accepted the defect of the impugned order. The order, u/s 263 of the Act should be in details & be enriched with facts and should be well reasoned in relation to application of section 263 of the Act. We are directing the ld. PCIT to pass a fresh order considering to the provisions of section 263 and identify the proper lacunae in the order of the ld. Assessing Officer. Needless to add that adequate opportunity of hearing shall be granted to the assessee.”

To Read the full text of the Order CLICK HERE

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