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2023 (4) TMI 86 - ITAT AMRITSARRevision u/s 263 by CIT - lack of enquiry/no enquiry v/s inadequate enquiry - cash deposit arising from the return and the reason for CASS selection have been examined from the reply of the assessee's representative - HELD THAT:- We have to understand that lack of enquiry/no enquiry is different from inadequate enquiry and it is only in case of no enquiry by the AO, Pr. CIT/C1T can exercise jurisdiction u/s 263 and not in case where the AO has made enquiries as seems appropriate in the facts and circumstances of the case. In the instance case inquiry on relevant issue has been made by AO, hence no action invited u/s 263. Under the facts and circumstances, the provisions as contained in clause (a) of Explanation 2 to sub section (1) of Section 263 of the Income- Tax Act, 1961 is not applicable in the present case. Since, the A.O. has made all enquiries regarding the cash flow statement from the State Bank of India as well as from the Punjab National Bank and the deposit was also confirmed from the certificate issued by M/s Amar Nath Kashmiri Lai and the status of the farmer earning Rs. 30.00 Lacs per annum and the payments for expenses thereof and hence, the assessment order cannot be deemed to be erroneous in so far as it is prejudice to the interest of the revenue. We hold that the impugned order passed by the PCIT is perverse to facts on record in holding assessment order erroneous and prejudice to the interest of revenue on account of lack of enquiry. Accordingly, the order passed by the PCIT -1, Jalandhar u/s 263, is cancelled being bad in law. Decided in favour of assessee.
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