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2014 (11) TMI 292 - AT - Income TaxJurisdiction of CIT to invoke revisional jurisdiction u/s 263 - Prejudicial to the interest of Revenue or not - Necessary details and evidences for the claim of benefit were duly furnished before the AO or not – Held that:- The observation of the CIT that necessary enquiries were not made or necessary details were not furnished by the assessee or examination of the same by the Assessing Officer is not substantiated - CIT has not pointed out any error in the order as to how it is erroneous and prejudicial to the interest of Revenue - requisite details were duly furnished by the assessee and the same were duly examined by the AO - there is a distinction between “lack of enquiry” and “inadequate enquiry” - necessary details were produced and examined by the AO, thus, it is not a case of lack of enquiry by the AO – relying upon Reliance Gas Transportation Infrastructure Ltd. vs. CIT [2014 (1) TMI 800 - ITAT MUMBAI] - there must be material before the Commissioner to satisfy himself that two requisite provided u/s. 263 are present, otherwise power cannot be exercised at the whims and caprice of the Commissioner. An incorrect assumption of fact or an incorrect application of law would satisfy the requirement of order being erroneous u/s. 263 - The phrase “prejudicial to the interest of the Revenue” u/s. 263, has to be read in conjunction with the expression “erroneous” order by the AO - every loss of Revenue as a consequence of assessment order cannot be termed as prejudicial to the interest of Revenue - assessment u/s 143(3) of the Act was framed by the AO after obtaining necessary details from the assessee and further it were examined by him - even if, the same has not been spelt elaborately in the assessment order it cannot be said that there is a lack of enquiry or prejudice has been caused to the Revenue, the order of the Commissioner is set aside – Decided in favour of assessee.
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