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2024 (2) TMI 1149 - ITAT DELHIRevision u/s 263 by CIT against reopening of assessment - AO had not made enquiries on capital gains, investment in time deposits with the Axis Bank and deduction u/s 54 thereby making his order erroneous and prejudicial to the interest of the Revenue - HELD THAT:- We find once the Ld. AO having recorded the reasons for reopening the assessment and having formed a belief that income of the assessee had escaped assessment, had not made any addition in the reassessment proceedings in respect of issues that are subject matter of reopening. Hence, the very basis of formation of belief for the Ld. AO vanishes. Hence, the Ld. AO could not have framed any reassessment per se. Logically the Ld. AO should have simply dropped the initiation of reassessment proceedings instead of passing a separate reassessment order. Once, the reassessment order per se framed by the Ld. AO is not sustainable in the eyes of law, any revision order passed thereon u/s 263 seeking to revise such unsustainable order cannot be accepted in the eyes of law and consequential revision order also passed u/s 263 of the Act deserves to be quashed. Our view is further fortified by the decision of Sh. Pramajit Singh vs. PCIT [2023 (12) TMI 1292 - ITAT DELHI] wherein the Tribunal placed reliance on the decision of Software Consultants [2012 (2) TMI 18 - DELHI HIGH COURT] AO did not make any addition for the reasons recorded at the time of issue of notice under Section 148 of the Act. This position is not disputed and disturbed by the Commissioner of Income Tax in his order under Section 263 of the Act. Sequitur is that the Assessing Officer could not have made an addition on account of share application money in the assessment proceedings under Section 147/148. Accordingly, the assessment order is not erroneous. Thus, the Commissioner of Income Tax could not have exercised jurisdiction under Section 263 of the Act - Appeal filed by the assessee is allowed.
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