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2014 (8) TMI 876 - HC - Income TaxRevision of order u/s 263 – order erroneous in so far as prejudicial to the interest of revenue - Tribunal decided in favor of assessee - Held that:- The assessee has shown availability of cash, but the same was never found - The explanation given by the assessee that cash was taken by the partners, who have spended, is not acceptable - The money belongs to the firm and it was not the money of the partners - The accounts were not completed at the time of survey - Vouchers regarding the various expenses were not available, so the books of accounts were likely to be rejected - the income has to be computed by applying a suitable net profit rate as decided in Saraya Engineering Works Vs. CIT [1986 (12) TMI 24 - ALLAHABAD High Court] - The matter needs deep investigation - The CIT had rightly passed an order u/s 263 of the Income Tax Act, where he had directed the AO to make a fresh assessment order - The Tribunal has set aside the order without examining the facts of the case – the order passed by the Tribunal is set aside and the matter the order passed by the CIT u/s 263 is restored – Decided in favour of revenue.
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