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2014 (4) TMI 699 - ITAT MUMBAIJurisdiction u/s 263 of the Act – Validity of order of relooking of the cash deposits – Applicability of section 44AF of the Act - Held that:- An order cannot be termed as erroneous unless it is not in accordance with law - If an Income-tax Officer acting in accordance with law makes a certain assessment, the same cannot be branded as erroneous by the Commissioner simply because, the order should have been written more elaborately - AO has not applied his mind with respect to the deposit in bank account, which led to increase in the capital of the assessee - where the AO frames assessment without application of mind and without making enquiry, the order of the AO becomes erroneous as well as prejudicial to the interest of Revenue - it is clear from the reply of the assessee before the CIT that bank account was deposited was not disclosed in the return of income - it was also contention of the assessee that the amounts so received and deposited was on account of sale of business which comes under Section 44AF – the order of the CIT is modified and the AO is directed to examine the applicability of provisions of Section 44AF – Decided partly in favour of Assessee.
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