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2016 (3) TMI 1231 - AT - Income TaxRevision u/s 263 - non recording or wrong recording of certain transactions - Held that:- Some of the observations made by the learned Commissioner of Income Tax with regard to wrong noting and not noting of certain entries may be correct, as we see that even the assessee has admitted to that. However, these mistakes do not given the learned Commissioner of Income Tax jurisdiction under section 263 of the Act, there are other mechanisms provided under the Act to correct these anomalies. Further, in this context, we also observe that if all these corrections are done, whether the tax imposable on the assessee will increase or decrease, this fact also remains under the clouds. In such circumstances, how can the learned Commissioner of Income Tax infer that these mistakes lead to the order being prejudicial to the interest of the Revenue, it may result into being prejudicial to the interest of assessee also. Therefore, we see that the learned Commissioner of Income Tax ’s act of assuming jurisdiction under section 263 of the Act is not as per law. The issue of recording, non-recording, under recording of entries etc. are all inter-related and the Assessing Officer as well as CIT (Appeals) have already applied their mind to the same, how can the wrong recording or under recording can be considered an issue independent of non-recording, we do not understand. Otherwise also, as we have held elsewhere in this order, there are other mechanisms under the Act to correct these kind of anomalies, if any. - Decided in favour of assessee.
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