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2013 (9) TMI 1078 - AT - Income TaxRevision U/S 263 - unexplained investment - Held that:- A.O. had not made any inquiry with regard to the investment made in shares for ₹ 53,70,000/- and source of investment therein. The fund was mixed up i.e. owned fund as well as borrowed fund. The appellant had paid interest of ₹ 5,80,773/-, which has been allowed by the A.O. without verifying. Further, there was a disclosure u/s. 133A of the IT Act on account of excess stock of ₹ 3,11,427/- whereas the appellant also debited the similar amount in purchase account. Effectively, the appellant had neutralized the disclosure by debiting the purchase. The ld. A.O. had not verified the fact and no inquiry had been made before accepting the assessee’s claim under both the heads. The A.O. raised the query but the assessee did not reply on both aspects before him. The ld. CIT has set aside the order to the A.O. and directed to pass order as per law after proper verification and inquiry. Thus, we have considered view that ld. CIT’s order is not a change of opinion but is as per the Hon’ble Supreme Court decision in case of Malabar Industrial Company Ltd. vs. CIT [2000 (2) TMI 10 - SUPREME Court ].
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