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2010 (1) TMI 864 - AT - Income TaxAction u/s 263 - revision - Gifts - assessee were unable to produce the donors or the persons from whose bank accounts the drafts were issued - AO after analysis of the evidence produced by the assessee and examining the persons who have advanced loans or gave the gifts to his minor sons has accepted the genuineness - Against this stand of the AO the grievance of the Ld. Commissioner is that quality of inquiry is not as good as it ought to have been. His other observation is that notices issued to four persons who has advanced loans to the assessee received unserved. According to the AO assessee has filed confirmation their Permanent Account Number and produced those persons before the AO. The one of the observation of the Ld. Commissioner is that so many persons were maintaining bank account where balances are built up mostly by cash and taken out immediately by way of cheques and drafts, thus they are working as entry provider. The contention of the assessee before Ld. CIT qua this aspect is that is how these creditors are maintaining their affairs, is none of the assessee's concern – Held that:- Commissioner would not be justified to take action u/s 263, Commissioner is not justified in taking cognizance u/s 263 of the Income Tax Act. The appeal of the assessee is allowed and the order passed u/s 263 is quashed.
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