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2015 (12) TMI 1228 - AT - Income TaxRevision u/s 263 - unverified purchases - Held that:- A.O., while completing the assessment under section 143(3), has not verified the details of purchases adopted by the assessee and to that extent, the Ld. CIT's order under section 263 holding assessment order to be erroneous and prejudicial to the interests of the Revenue also has been upheld by the ITAT. Further, in the final paragraph of its order, this Tribunal has held that the Ld. CIT was right in directing the A.O. to re-do the assessment as the A.O. in the original assessment had not made any enquiries as to the genuineness of the purchase figure or to the validity of the assessee's separate debit of transport expenditure under the Head "Direct Expenses" i.e., Schedule-11 to the P & L account and further that the A.O. has not applied his mind by verifying from the Sales Tax authorities and failed to ascertain correct figures and hence, the order of the assessment passed by the A.O. without making necessary enquiries on such important points connected with assessment would be erroneous and prejudicial to the interests of the Revenue. From these observations of the Tribunal, it is evident that this Tribunal has held assessment order to be erroneous and prejudicial to the interests of the Revenue and has upheld the order of the Ld. CIT under section 263 in directing the A.O. to re-do the assessment. Though, there is a finding by the Ld. CIT in his order that the A.O. has not made proper enquiries on the issue of inflated purchases, in the penultimate para 4, he has directed the A.O. to re-do the assessment in accordance with his directions which is clearly in contradiction to his earlier finding. The Tribunal has not given any finding on this part of the order of the Ld. CIT. This, in our opinion, is a mistake apparent from record. In view of the same, we modify the order of this Tribunal by adding the following sentences to the end of paragraph-19. "However, the direction of the Ld. CIT in paras 4 and 5 are set aside and the A.O. is directed to re-do the assessment after verification of the details relating to the issue and after affording reasonable opportunity of hearing to the assessee."
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