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2015 (10) TMI 318 - AT - Income TaxRevision u/s 263 - Held that:- It is observed from the notice issued by the Ld. CIT under section 263 and the detailed reply filed by the assessee to the said notice that most of the issues raised by the Ld. CIT were not only enquired by the A.O. but the claim of the assessee was accepted by him by applying his mind to the relevant facts of the case as well as the material placed on record. In my opinion, the assessment order passed by the A.O. therefore cannot be held to be erroneous and prejudicial to the interests of the Revenue on these issues as alleged by the Ld. CIT in his impugned order passed under section 263. Assessment order passed by AO cannot be held to be erroneous and prejudicial to the interests of the Revenue only because the Ld. CIT is of the opinion that some more enquiry should have been made by the A.O. The power under section 263 cannot be extended to hold an order passed by the A.O. as erroneous and prejudicial to the interests of the Revenue due to inadequacy of enquiry. After having perused the impugned order of the Ld. CIT in the light of the facts and material on record and detailed submissions made by the assessee, find that the directions of the Ld. CIT on various issues are in the nature of starting roving and fishing enquiry which is not permissible under section 263 as held inter alia in the case of CIT vs. Gabriel India Ltd., [1993 (4) TMI 55 - BOMBAY High Court ]. CIT has no material before him to consider the assessment order to be erroneous and prejudicial to the interests of the Revenue on the issues pointed out by him. A perusal of the discussion made by him in this regard shows that his actions are more like an A.O. in session of assessment proceedings rather than revisional authority exercising power under section 263. It is settled law that the powers under section 263 are required to be exercised by the Ld. CIT sparingly and in genuine cases when due to error committed by the A.O. there is loss to the revenue. Thus no errors in the order of the A.O. passed under section 143(3) as alleged by the Ld. CIT calling for any revision under section 263. - Decided in favour of assessee.
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