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2012 (9) TMI 363 - AT - Income TaxValidity of assumption of jurisdiction by Commissioner u/s 263 – reassessment purported on ground that discount allowed cannot be claimed u/s.36(1)(vii) - A.O. should have made further inquiries - AO dis-allowed Rs 61,12,431 out of total discount claimed of Rs 81,49,937 – assessment order read as under “Dis-allowance of discount allowed as discussed” - assessee contended examination of issue in detail by AO – Held that:- It was the case of the CIT to further verify the order of the AO when he has already noted that the claim was the loss of the Revenue and shall not be allowed. No merit is found in contention of the Revenue insofar as the facts leading to claim of bad debt and allowance of discount were closely linked as observed by the AO cannot leave any room for doubt as sought to be assumed by CIT u/s.263 insofar as he has not given any direction to the AO which would lead to the finding that the order of the AO was erroneous coupled with the fact that it was prejudicial to the interest of revenue. Further, Commissioner while setting aside assessment u/s.263 should not give specific direction to the Assessing Officer to complete assessment in a particular manner. See Development Construction & Allied Services (India) P. Ltd v. ITO (2011 (3) TMI 850 - ITAT, MUMBAI ). Assessment u/s 263 is quashed – Decided in favor of assessee.
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