TMI Blog2009 (1) TMI 886X X X X Extracts X X X X X X X X Extracts X X X X ..... aside the order of the CIT u/s 263 on appreciation of a pure question of fact that AO had undertaken and held reasonable enquiry by calling for explanations from the assessee and in view of such finding it interfered with the order of CIT who had erroneously come to a finding that no enquiry was held by AO. Thus, there being materials on record to show that enquiry was made regarding the expenditure claimed, this court is of the view that ITAT was justified in quashing the order of the CIT. The reference is answered accordingly. - MR. SHIVA KIRTI SINGH MR. JAYANANDAN SINGH JJ. For the Applicant:- Mr. Harshbardhan Prasad, Sr. Standing Counsel Mr. Rishiraj Sinha, Jr. Standing Counsel Heard learned counsel for the Revenue. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ands of the assessee was on account of gift of copyright of a book by the father of the assessee and hence, he came to a tentative conclusion that it was gift income and there could not be any question of claiming any deduction for expenditure in respect of gift income. Hence, show cause notice u/s 263(1) of the Act was given to the assessee indicating that the CIT was of the view that royalty was a gift from the father of the assessee and not his income and hence, there was no question of allowance of any expenditure from receipt of a gift. The notice further mentioned that the assessment of gift after treating the same as income and allowance of expenditure by the Assessing officer at the rate of 50% of the gifted royalty amount had led t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the opinion that an enquiry had been held in respect of claim of the assessee and on facts the Tribunal was satisfied that there was no irregularity or illegality in the order of Assessing Officer on the ground made by the CIT that there was no enquiry before allowing the 50% of the income as expenditure. In the aforesaid facts and circumstances, this court is required to answer the reference which is on the question of law already noticed above. On going through the statement of the case and other relevant materials this court finds that the Income Tax Appellate Tribunal set aside the order of the Commissioner u/s 263 of the Act on appreciation of a pure question of fact that the Assessing Officer had undertaken and held reasonab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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