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2017 (5) TMI 1613 - AT - Income TaxRevision u/s 263 - assessment of loss - Order erroneous and Prejudicial To Interests Of Revenue - Held that:- Principal CIT is not specific as to the reasons why the assessment made by the AO was erroneous and prejudicial to the interest of the Revenue. Principal CIT has not arrived at any independent finding for issuance of notice under section 263. Further, we also observed that as available, a thorough enquiry has been conducted by the AO which comprised of questionnaire consisting of 24 questions to which the assessee has submitted his reply, thereafter there is a notice under section 142(1) with a query letter to which again the assessee has replied to the queries and furthermore there is a reply of query by the assessee regarding the loss of ₹ 69,356, so it is evident there has been a detailed investigation and enquiry conducted by the AO. We further take guidance on this issue from the various judicial pronouncements. In Arvind jewellers (2002 (7) TMI 50 - GUJARAT HIGH COURT), it was held that when the AO has considered the materials on record, then the CIT cannot say that such an order of the AO was erroneous and prejudicial to the interest of Revenue. In the instant case, it is evident as we have already observed that a thorough enquiry was conducted on the assessee by the Department and when such an exercise has been concluded, then the order of the AO cannot be erroneous and prejudicial to the interests of the Revenue - decided in favour of assessee
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