The Amritsar Bench of Income Tax Appellate Tribunal (ITAT) held that the revisionary Power of PCIT cannot be invoked as AO had scrupulously discharged the duty.
The assessee, Paradise Rubber Industries has appealed against the order of Pr. Commissioner of Income Tax in holding that the Assessment order u/s 143(3) dated 11/12/2017 is erroneous in so far as it is prejudicial to the interest of revenue and thereby setting aside the order by invoking the revisionary power u/s 263. The facts as well as the legal position have not been properly appreciated.”
The assessee submitted that the assessment was framed by the assessing officer for a limited scrutiny and the principal CIT had invoked the revisionary power under section 263, four and issue which was not part of the reasons for which the case was selected for scrutiny assessment. It was the contention of the Ld.AR that the order of the assessing officer cannot be said to be prejudicial and erroneous to the interest of the revenue as it was not necessary for the assessing officer to examine the issue beyond the scope of limited scrutiny for which the matter was selected.
The coram of Accountant Member, Dr. M.L.Meena and Judicial Member, Laliet Kumar held that once the assessing officer was required to apply his mind to the specific issues, which were duly dealt by the assessing officer in the order passed by him, it cannot be said that the order passed by the assessing officer was erroneous or prejudicial to the interest of the revenue. The revenue in its wisdom has directed the assessing Officer to decide the specific issues and laid down the condition of deviation from the specific issues after fulfilling the requirement of the circular issued by the Board in this regard. Once the AO had scrupulously discharged the duty assigned to him, it cannot be said by PCIT that the order passed by the assessing officer was erroneous and prejudicial to the interests of the revenue.
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