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2016 (4) TMI 1429 - ITAT PUNERevision u/s 263 - Reopening of assessment u/s 147 order set aside by CIT - Disallowance u/s 40(a)(ia) towards payment made by assessee to one JD Fabricators and verify the claim of the assessee with regard to the payment made as claimed as purchase instead of professional charge - HELD THAT:- We are totally at loss to perceive such action of the CIT. AO in exercise of quasi judicial powers and on consideration of reply of the assessee on the issue which is subject matter of agitation, has categorically recorded that the disallowances have been correctly made and no discrepancy subsists. Thus, the very issue for which S. 147 was invoked was addressed to the satisfaction of the Assessing Officer on facts. A communication by the Assessing Officer to the CIT captioned ‘final reply in respect of internal audit objection in the case of M/s Laxminarayan Associates A.Y 2005-06’ wherein it was explained to the CIT that the disallowance under S. 40(a)(ia) could not be invoked owing to its inapplicability citing objective facts CIT has not demonstrated any perversity in such conclusion on facts while invoking powers under S. 263 of the Act. Needless to say, once an enquiry on the issue has been carried out and a conclusion thereon has been arrived at by the Assessing Officer, the same cannot be interfered with under S. 263 merely because the Commissioner wants it to be carried out in particular way. Mere disagreement of the CIT with the order of the Assessing Officer would not in our view render such order erroneous. We find that it cannot be said that the Assessing Officer has acted perfunctorily while dropping the proceedings. Mere ipse dixit of the CIT is not the best foundation for invoking powers under S. 263 of the Act. We find considerable merit in the arguments canvassed on behalf of the Assessee for cancellation of the order of CIT. - Decided in favour of assessee.
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