Calcutta HC: Revenue’s Section 263 Appeal Dismissed as Loan Inquiry Was Adequate

The Revenue challenged the Tribunal’s decision setting aside the order passed by the Principal Commissioner of Income Tax, Central–1, Kolkata under Section 263. It observed that the Assessing Officer had raised necessary queries regarding the issue, considered the details furnished by the assessee and adopted a plausible view. The PCIT had also not commented on such information during the revision proceedings before treating the assessment order as erroneous and prejudicial to the interests of the Revenue. The short issue involved in the instant case is whether the Principal Commissioner of Income Tax, Central – 1, Kolkata [PCIT] was justified in invoking his power under Section 263 of the Act. CIT and quash the impugned order and restore the assessment order dated 26.12.2017.”