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2013 (1) TMI 205 - AT - Income TaxJurisdiction power u/s 263 by CIT(A) - assessee using borrowed funds for the purpose of business has diverted the same for the purpose of investment in shares and has claimed an interest towards interest on loan - assessee received Rs. 1.55 crores as advance from Sri S.V. Sriramulu towards the facilitator for the purchase of land - AO has not examined whether there was any transfer in accordance with the provisions of section 2(47) - Held that:- Perusal of the assessment order passed by the AO does not show any application of mind on his part as there is no enquiry by the AO while passing assessment order u/s. 143(3). He simply accepted the income declared by the assessee mechanically accepting what the assessee wanted him to accept without any application of mind or enquiry. The evidence available on record is not enough to hold that the return of the assessee was objectively examined or considered by the AO. It is because of such non-consideration of the issues on the part of the AO that the return filed by the assessee stood automatically accepted without any proper scrutiny. The assessment order is clearly erroneous as it was passed without proper examination or enquiry or verification or objective consideration of the claim made by the assessee. The AO has completely omitted to examine the issues in question from consideration and made the assessment in an arbitrary manner. His order is a completely non-speaking order. Thus it was a fit case for the learned Commissioner to exercise his revisional jurisdiction under section 263 which he rightly exercised by cancelling the assessment order and directing the Assessing Officer to pass a fresh order considering the issues raised by the CIT. The assessee should have no grievance in the action of learned Commissioner in exercising the jurisdiction u/s. 263 as the view so taken by the Assessing Officer without making the requisite inquiries or examining the claim of the assessee will per se be an erroneous view and hence will be amenable to revisional jurisdiction under Section 263. Second reason is that it is not taking of any view that will take the matter under the scope of Section 263 - against assessee.
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