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2009 (1) TMI 886 - HC - Income TaxReference u/s 256 (2) - gift of copyright of a book by the father - received royalty income and claimed expenses - AO allowed the expenses to the extent of 50% of the royalty income - Whether ITAT, was justified in quashing the order of CIT u/s 263 specially when the assessee has not maintained any account and there is no material on record to show that enquiry was made regarding the genuineness of expenditure incurred? - HELD THAT:- On going through the statement of the case and other relevant materials this court finds that ITAT set 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.
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