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2013 (7) TMI 283 - ITAT MUMBAIRevision order passed u/s 263 - addition made with regard to disallowance of Rs.50 lac on account of advance written off - Held that:- It is manifest from the query raised by the AO and reply submitted by the assessee that the AO conducted an enquiry and after considering the reply of the assessee has accepted the claim. Though in the assessment order passed u/s 143 (3) the AO has not discussed this issue however, once specific query was raised and the assessee submitted the reply and after considering the assessee's reply, AO has accepted the claim of the assessee then it cannot be said that there was no enquiry at all on this issue. There must be a distinction between a lack of enquiry and inadequate enquiry in a case the AO has made an enquiry and took a possible view under the law then even if the view taken by the AO is not acceptable to the Commissioner it cannot render the assessment order as erroneous and prejudicial to the interest of revenue as to empower the Commissioner to invoke the provisions of Section 263. The Hon'ble High Court in DG HOUSING PROJECTS LTD case [2012 (3) TMI 227 - DELHI HIGH COURT] has clearly made out distinction between the orders where no enquiry has been made by AO from the cases of inadequate enquiry. Therefore, where the AO had made an enquiry and taken a possible/ permissible view then the said order cannot be treated as erroneous and prejudicial to the interest of the revenue unless the view taken by the AO is unsustainable in law - Since the order passed u/s 263 disallowed therefore, consequential disallowance made in the order passed in pursuant is not sustainable - appeals of the assessee allowed.
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