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2014 (8) TMI 714 - AT - Income TaxRevisional jurisdiction of CIT u/s 263 – Order passed after proper examination of record or not – Held that:- While invoking revisional jurisdiction u/s 263 of the Act, the Commissioner found that the net profit shown by the assessee is quite low and also there is a decline in net profit in comparison to last year - the net profit shown by the assessee is very low, the assessment order is not only erroneous but certainly prejudicial to the interest of Revenue - the AO has not considered the true facts and even has not compared the like business of other assessee and merely accepted the version of the assessee – Relying upon Malabar Industrial Co. Ltd. Versus Commissioner of Income-Tax [2000 (2) TMI 10 - SUPREME Court] - The assessment order becomes erroneous where it is found that proper and due inquiry has not been made by the AO and due tax has not been collected from the assessee - the books of the assessee were held to be not complete and the actual profit could not be ascertained - the principle of consistency must be followed before invoking revisional jurisdiction but at the same time it is equally important that mistake cannot be perpetuated - the order passed by the I.T.O would obviously be prejudicial to the Revenue and would give jurisdiction to the Commissioner u/s 263 as held in CIT Vs Pushpa Devi [1986 (6) TMI 20 - PATNA High Court] - the unsecured loan also remained to be examined by the AO – Decided against Assessee.
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