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2013 (6) TMI 661 - AT - Income TaxRevision - Jurisdiction power u/s 263 by CIT - credit worthiness of persons introducing new share application money were not ascertained by the then AO - No enquiry in respect to sundry creditors has been made by the A.O.- Details regarding 'other Income' as declared by assessee had not been called for by the then A.O. - No verification with regard to decrease in stock - No verification with regard to sundry debtors - Allegation of the CIT is on the premise that AO did not consider the factual position and there was lack of inquiry or investigation on indicated item - Held that:- What emerges from the order-sheet and record is that AO conducted inquiry on all these aspects by way of questionnaire and notices u/s 142(1). In the assessment order there are clear finding of satisfaction by AO that all the compliance was made and he was satisfied about the information provided by the assessee by way of account books, record and the compliance to the questionnaire. Thus, the allegation of CIT is not sustainable that it is a case of non-inquiry or lack of inquiry. As with the perusal of the order-sheet and voluminous compliance filed by the assessee which is placed on paper book, clearly suggest that proper inquiries were made which are duly complied on the indicated issues. Though DR has referred to the short and cryptic order of AO CIT no where refers to the short order. It is not the shortness of the order which makes it tenable or not, rather there are contents of the order about clear findings of the AO on the record which will make the order tenable. Thus in agreement with assessee that while exercising powers u/s 263 CIT should not frame issues about third parties whose record was not before him as relying upon CIT Vs. Anil Kumar Sharma (2010 (2) TMI 75 - DELHI HIGH COURT), CIT Vs. Sunbeam Auto Ltd. (2009 (9) TMI 633 - Delhi High Court), DLF Ltd. (2012 (9) TMI 626 - DELHI HIGH COURT), Max India Ltd. (2007 (11) TMI 12 - Supreme Court of India), Malabar Industrial Co. Ltd. (2000 (2) TMI 10 - SUPREME Court), M/s New Cyberabad City (2013 (6) TMI 531 - ITAT HYDERABAD) and The Civil Services Society (2013 (6) TMI 530 - ITAT DELHI). Thus order passed by the CIT u/s 263 is quashed - assessee's appeal allowed.
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