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2019 (4) TMI 1044 - HC - Income TaxRevision u/s 263 - canceling the assessment order passed u/s 143(3) and directing AO to pass a fresh assessment order on all issues, except those, decided by the Commissioner of Income Tax (Appeals) - AO recorded in order that assessee had “duly furnished the details of opening stock, closing stock, sales and production i.e. consumption of paddy etc.” - no inquiry or lack of enquiry - HELD THAT:- It cannot be said that this case was a case of ‘no inquiry’ by the AO. Added to this is the fact that the CIT has himself not undertaken any independent inquiry to contradict the conclusions reached by the AO and to demonstrate that the order of the AO was erroneous and prejudicial to the interest of the revenue. There were other issues that arose from the order of the AO apart from the valuation closing stock. These included the disproportionate increase in the packaging expenses and suppression of sales. The CIT has in its impugned order dated 29th March, 2014 refrained from giving a finding on the said issues and therefore failed to come to any conclusion that the order of the AO on these issues was erroneous and prejudicial to the interest of the revenue. This again was not in compliance with the mandate of Section 263 of the Act. As pointed out by the Assessee, without being contradicted by the Revenue, that from AY 2011-12 onwards, no addition was made on account of discrepancy in closing stock. There is merit in the contention therefore of the Assessee that since the issue in the previous and subsequent years stands adjudicated in its favour by the ITAT and this Court, it would be futile to reopen the issue only for three AYs in between viz., 1999-2000 to 2001-02. It is no longer a ‘live issue’. The Court cannot be unmindful of the fact that for a number of AYs from 1997-1998 till 2014-15, barring the three AYs in question, the issues have been decided ultimately in favour of the Assessee. In each of these AYs it was a scrutiny assessment under Section 143 (3) of the Act. Surely, the rule of consistency would apply in such a scenario. Accordingly, the Court sees no reason why only for the three AYs in question, the matter should be reopened. - Decided . in favour of the Assessee and against the Revenue.
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