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2014 (1) TMI 318 - AT - Income TaxValidity of order passed u/s 263 - Held that:- The assessee has filed the list showing details of share capital received during the financial years 2002-03 to 2008-09 - In respect of trading results, the assessee filed the details of purchases of Rs.10 lakhs and above - The assessee explained that why its books of accounts should not be rejected, Explanation on stock valuation was given - The assessee further explained the link of sale to a particular purchase – A perusal of the material evidence brought on record show that the AO had issued summons under Section 131 of the Act to various companies, who have given share application money to the assessee - These summons show that the AO asked for the details of share application money and loans invested/given to the four companies during A.Y.2003-04 to 2009-10 - It is clear that the AO has made specific enquiries in relation to the trading loss as well as share application money to which the assessee has given specific reply with supporting documentary evidences during the course of the assessment proceedings - This clearly shows that not only the AO has applied his mind on the facts of the case but also it has been approved by his immediate superior authority, who himself must have applied his mind before according approval to the assessment order - The order of AO was not erroneous and prejudicial to the interest of Revenue - The conditions for invoking power u/s 263 was not fulfilled - Decided in favour of assessee.
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