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2014 (5) TMI 1001 - AT - Income TaxJurisdiction of the CIT u/s 263 of the Act – Held that:- After enquiry conducted by the CIT, he has recorded a bald statement that he was not satisfied with the explanation offered by the assessee - During the revisional proceedings the assessee has brought to the notice of the CIT, that the issue was inquired into by the AO and it has filed the said reply before the AO during the course of assessment proceedings, so the reply submitted to the AO must have been part of the assessment records - the AO had conducted enquiry into this issue - it is not a case wherein, no enquiry whatsoever was carried out by the Assessing Officer - in the original assessment order there is no mention of this claim at all. The CIT after examining the agreements and the explanations furnished before him ought to have recorded reason to demonstrate that the view taken by the AO is incorrect, and unsustainable in law and consequently ought to have recorded a finding that the order of the AO was erroneous and prejudicial to the interest of Revenue - CIT did not record any reason to hold that the implied view of the AO is unsustainable in law and therefore erroneous and prejudicial to the interest of the Revenue, which exercise has not been found to have taken place - the order of the CIT without recording the reason to demonstrate that the view of the AO after enquiry as incorrect, unsustainable in law and consequently ought to have recorded a finding that the implied view of the AO was erroneous and prejudicial to the interest of Revenue, which is absent in the order and therefore vitiates the revisional order – thus, the order of the CIT is set aside – Decided in favour of Assessee.
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