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2021 (11) TMI 677 - ITAT CHANDIGARHRevision u/s 263 by CIT - lack of enquiry or inadequate enquiry - PCIT revised the assessment order passed by the AO basically on the ground of insufficient enquiry - case was selected for scrutiny and the AO passed assessment order u/s. 143(3) of the Act and accepted the returned income - HELD THAT:- PCIT has revised the assessment order on the ground of lack of enquiry or inadequate enquiry, which is contrary to the evidence on record. Further the Ld. PCIT has referred and relied Explanation 2 to section 263 of the Act, inserted w.e.f. 01.06.2015 to substantiate his action. As in the case of Narayan Tatu Rane [2016 (5) TMI 1162 - ITAT MUMBAI] has held that the explanation does not authorize or gives unfettered powers to the commissioner to revise each and every order passed by the AO if in his opinion same has been passed without making enquiries or verification which should have been made. In the present case since the AO has passed the assessment order after due application of mind and after accepting the explanation given by the assessee, the same cannot be termed as erroneous. We are therefore of the considered view that the order passed by the AO is not ex facie erroneous, therefore the Ld. PCIT has wrongly directed the AO to pass assessment order afresh. In our considered view the observation of the Ld. PCIT that AO has passed the order without making proper enquiries is not factually correct. The order passed u/s. 263 is not in accordance with the settled principles of law. - Decided in favour of assessee.
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