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2015 (9) TMI 443 - ITAT HYDERABADRevision u/s 263 - disallowance u/s. 40(a)(ia) and u/s. 40A(3) made by AO - Held that:- As from the material on record, it is clear that the AO made enquiries on the very same issues during the course of assessment proceedings and merely because, the returned income is lower, the assessment order cannot be termed as erroneous. It is only after the examination of detailed information filed during the course of assessment proceedings that assessment order came to be passed. It is not a case of lack of enquiry. It is for the AO where to stop the enquiry. It is only in the case of nonenquiry, the jurisdiction u/s. 263 can be exercised by the Commissioner. We notice that the Ld.AO after duly considering the explanation and information filed in response to the questionnaire on various issues, on being satisfied with such explanation chose not to make any further enquiry. Endless enquiry is not possible and it is for the Ld.AO to decide when to end the enquiry. The Ld.CIT cannot transgress the jurisdiction u/s. 263 of the Act by mentioning that no proper enquiry was made. See Rishi Kumar Gupta Vs. CIT [2004 (2) TMI 270 - ITAT AGRA ] The fact that the AO issued the questionnaire on several issues and the assessee had responded to the same by filing the information and on consideration of replies from the assessee, the AO held that an amount of ₹ 23,137/- u/s. 40(a)(ia) and an amount of ₹ 1,42,650/- u/s. 40A(3) of the Act held to be disallowable, goes to prove that the AO had applied his mind while passing the assessment order and therefore, we hold that the Ld.CIT is not correct in exercising the jurisdiction in the present case under the provisions of Section 263 - Decided in favour of assessee.
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