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2016 (3) TMI 57 - AT - Income TaxRevision u/s 263 - income from incentives undisclosed - Held that:- As far as the first issue is concerned, it is not the case of the Revenue that the assessee had income from incentives which were ultimately not offered. The assessee has explained to the AO that on account of procedural lapses, it could not claim the incentives, and therefore, no income has accrued to him. This stand of the assessee must have been examined by the AO. We could appreciate the stand of the ld.Commssioner, had she pointed out any fundamental change either in the nature of receipt or any development showing that this could be assessed in the hands of the assessee. As far as the second issue is concerned, the assessee has explained that its transaction does not fall within the meaning of speculative transactions provided under section 43(5) of the Income Tax Act. Now, how this could be a speculative transaction, nowhere discernible either from the show cause notice or from the findings of the ld.Commissioner. Ld. Commissioner has made an observation that there is an inadequate inquiry. As per the decision of the Hon'ble Gujarat High Court in the case of Amit Corporation (2012 (6) TMI 593 - GUJARAT HIGH COURT ) lack of inquiry would give jurisdiction to the Commissioner to take action under section 263. But the alleged inadequacy of inquiry would not empower the ld. Commissioner to take action under section 263 of the Act. In view of above discussion, we allow the appeal of the assessee and quash the order passed under section 263 of the Act by the ld.Commissioner - Decided in favour of assessee
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