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2015 (11) TMI 267 - AT - Income TaxRevision u/s 263 - issue of share application money - Held that:- With regard to the issue of share application money, we find that the amount of ₹ 52,48,000/- taken by the CIT is a clear mistake and it represents the opening balance as on 01.04.2007 and, in fact, the addition during the year was of ₹ 2.53 lakhs. The assessee has filed the required details and the order of the learned CIT itself is erroneous on this issue. In these facts of the case, we hold that the learned CIT was not justified in invoking the provisions of Section 263 of the Act on the issue of trade creditors and share application money and the same is cancelled. Claim of expenses which was accepted without any evidence or verification - Held that:- Complete details of the expenses over ₹ 1 lakh were asked by the Assessing Officer and the same were submitted by the assessee vide reply dated 25.10.2010 and copies of accounts of various heads of expenses were submitted and the supporting vouchers and bills, receipts etc. were also summoned and produced by the assessee on 25.10.2010 and on 28.10.2010. The accounts of the assessee were audited by the Chartered Accountant. We find that the order of learned CIT u/s 263 on this issue is based on mere suspicion and there is no material brought on record to suggest that the order of the Assessing Officer was erroneous or prejudicial to the interests of the Revenue. Accordingly, we hold that there was no justification for the learned CIT to pass order u/s 263 on this issue, which is cancelled accordingly. The grounds of appeal of the assessee are allowed. - Decided in favour of assessee.
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