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2015 (1) TMI 317 - AT - Income TaxRevision u/s 263 - assessee had set off the loss on sale and purchase of cotton yarn from the interest income - it was observed by the CIT that there was no such business in the earlier years - Held that:- A perusal of the order of the ld. CIT passed under sect ion 263 shows that there is no specific finding by the ld. CIT as to how the order is erroneous and prejudicial to the interest of revenue. All that is being said is that the assessee “very likely” has tried to reduce its income by booking fictitious loss and that non-verification appeared to be “highly suspicious”. CIT’s powers under section 263 admittedly cannot be invoked on mere presumptions and surmises nor on suspicion. Just by throwing allegation on the assessment proceedings on suspicion and presumptions, the assessment order is held to be erroneous and prejudicial to the interest of revenue. No enquiry has been done by the ld. CIT. This is not permissible. This view of ours also finds support to the decision of the Hon’ble Jurisdictional High Court in the case of CIT –vs. J.L. Morrison reported in [2014 (6) TMI 154 - CALCUTTA HIGH COURT]. In these circumstances, we are of the view that the order passed under section 263 by the ld. CIT is unsustainable on the facts mentioned and consequently the same stands quashed. - Decided in favour of assessee.
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