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2022 (5) TMI 1150 - ITAT KOLKATARevision u/s 263 - CIT setting aside assessment framed u/s 143(3) read with Section 147 for the reason that AO has failed to examined the identity, creditworthiness and genuineness of the transactions of share capital /share premium - HELD THAT:- The revisionary jurisdiction is not available to the PCIT merely on the ground that AO sought reply from the assessee during assessment proceedings which furnished by the assessee with evidences and are available in the assessment records however it did not find an elaborate discussion or reference in the assessment order. Similarly the powers of revision u/s 263 of the Act cannot be exercised arbitrarily in order to make roving enquiries and initiate fresh enquiries . In our considered view , the jurisdiction u/s 263 can be exercised to revise the assessments where no enquiry at all has been conducted by the AO which is a case of lack of enquiry but not in a case where the AO has conducted an enquiry which in the opinion of PCIT is inadequate /insufficient without showing as to how the order framed by the AO after appreciating the evidences filed by the assessee is contrary to facts or not in accordance with law. The case of the assessee finds supports on all these propositions from several decisions by the Apex Courts and other juridical forums as cited before us during the course of hearing namely Malabar Industrial Co. [1991 (10) TMI 26 - KERALA HIGH COURT], CIT vs. Max India Ltd. [2007 (11) TMI 12 - SUPREME COURT], CIT vs. Gabriel India Ltd [1993 (4) TMI 55 - BOMBAY HIGH COURT]. Thus we hold that the revisionary jurisdiction has not been validly exercised by the ld PCIT. Accordingly we quash the revisionary proceedings initiated u/s 263 of the Act and the consequent order passed u/s 263 of the Act. The appeal of the assessee is allowed.
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