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2012 (5) TMI 787 - AT - Income TaxDifference between "No Enquiry" and "Inadequate Enquiry" - Revision by Commissioner u/s 263 - CIT(A) had issued show-cause notice u/s 263, wherein the CIT(A) had asked the assessee to show- cause as to why the assessment order passed u/s 143(3) was not liable to be set aside as the AO had not conducted enquiry adequately which had led the assessment order to be erroneous and prejudicial to the interest of revenue. It was the submission by the ld. A.R. that the assessee had provided all the details, which were the foundation for the show-cause notice u/s 263 in the course of original assessment. AO conducted the enquiries and then the order was passed. It was the submission that the order passed by ld. CIT u/s 263 is bad in law and liable to be quashed. HELD THAT:- AO is not just a tax collector. He has to do the duty as an Officer, who is responsible for assessing the correct income. To prove an enquiry "inadequate" enquiry, CIT has to show that the enquiry and the opinion formed on the basis of such enquiry is fallacious. In the present case, the inquiry was made, documents were called for examination and opinion had been formed by the AO while passing the original assessment order. This has not been shown to be fallacious. Thus the order passed u/s 263 is unsustainable in law in so far as inquiry has been done by the AO when passing the original assessment order. Decision in the case of GEE VEE ENTERPRISES VERSUS ADDITIONAL COMMISSIONER OF INCOME-TAX, DELHI I, AND OTHERS [1974 (10) TMI 29 - DELHI HIGH COURT], relied upon. The impugned revision order stands quashed.
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