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2012 (10) TMI 427 - GAUHATI HIGH COURTSuo motu revisional jurisdiction under s. 263 of the Act – Held that:- If the order of the AO was based on wrong assumption of facts, incorrect application of law or non-application of mind, interference was permissible - order of the AO suffers from non-application of mind - AO failed to make basic enquiry required to be made when there was unusual increase of prices of shares purchased by the assessee by cash and the identity of the persons from whom the shares were purchased and to whom the shares were sold, was not ascertained nor the broker examined - shares were not of well known company and possibility of undisclosed income being introduced in the form of capital gain was not ruled out - case was clearly within the purview of exercise of suo motu revisional jurisdiction The observations of the Tribunal that since as many as 7 hearings had taken place and that the CIT could not have raised an objection to the manner of assessment, are unsustainable in law and not warranted by legal requirement under s. 263 of the Act for exercise of suo motu revisional jurisdiction. - in favour of the Revenue
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