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2012 (12) TMI 404 - AT - Income TaxLegitimacy of assessment order u/s 263 – Whether assessment u/s 263 can be called valid, when order passed was not based on finding mention in SCN issued u/s 263 – CIT proposing to cancel the assessment order passed u/s.143(3) being erroneous – Held that:- As the content given in the SCN have neither been confronted to the assessee nor any enquiry or examination has been done by the CIT himself to reach to the conclusion drawn by him in the impugned order. There is no finding as to how the AO’s order is erroneous in this regard and that whether the AO has failed to examine this issue. On the contrary as per the query letter issued by the AO and reply submitted by the assessee, it seems that all expenses have been looked into and verified by the AO. Thus on this point also the order of the AO cannot be held to be erroneous so far it is prejudicial to the interest of the Revenue. Thus without going into the merits of the issue raised, prima facie, we are of the opinion that the impugned order passed u/s.263 by the CIT is unsustainable in law as the same has been passed without giving any proper opportunity to the assessee which is in violation of principles of natural justice. Appeal decides in favour of assessee
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