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2023 (10) TMI 196 - ITAT DELHIRevision u/s 263 - As per CIT AO has not verified the creditworthiness of the creditors - HELD THAT:- As seen from the Record that the Ld. A.O., during the Assessment proceedings not only called for the record from the Assessee to submit, issued the questioners to the Assessee, but also issued Notice u/s 133(6) of the Act to the firms from whom the Assessee had the transactions calling upon them to produce the Balance sheet, Ledger and the ITR for the purpose of verifying the creditworthiness of the creditors. The said details were made available to the AO by the Creditors and also the Assessee respectively. A.O. not only made detail enquiry with the Assessee but also by issuing the Notice under Section 133(6) of the Act to the Creditors and after obtaining the details and convincing himself, found that the Creditors are genuine and passed the Assessment Order in-favour of the Assessee. There was no material brought by the Pr. CIT to observe that “no verification was made during the course of the assessment by the A.O.” On the other hand, it is seen from the record that, the Ld. A.O. has made detailed enquiry, considered all evidence and arrive to a conclusion to accepted the income declared by the Assessee. Thus, in our opinion, the Pr. CIT has only expressed the different view which is not permissible u/s 263 - Revisionary power u/s 263 of the Act is conferred by the Act on the Commissioner when an order is passed by the Authority is erroneous and prejudicial to the interest of the Revenue. Orders which are passed without inquiry or investigation are treated as erroneous and prejudicial to the interest of the Revenue, but which are passed after inquiry/investigation on the question/issue are not per se are normally treated as erroneous and prejudicial to the interest of the Revenue. Because, the Revisionary Authority feels and opines that further inquiry/investigation was required or deeper or further scrutiny should be undertaken, the same cannot be initiated without following the proper provisions u/s 263 of the Act. The decision of the Hon’ble Supreme Court in case of CIT vs. Max India Ltd [2007 (11) TMI 12 - SUPREME COURT] and Malabar Industrial Co. Ltd.[2000 (2) TMI 10 - SUPREME COURT] are aptly applicable in the present case as the Hon’ble Apex Court wherein it is held that Section 263 has to be read in conjunction with the expression “erroneous” order passed by the Assessing Officer. Every loss of revenue as a consequence of an order of the assessing officer cannot be treated as prejudicial to the interests of the revenue - Appeal of assessee allowed.
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