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2017 (9) TMI 1780 - AT - Income TaxRevision u/s 263 - Not conducting the proper enquiries or inadequate enquiry - revision with respect to the postal deposit, agricultural loans and construction of building in the name of Syamala a/c - Pr.CIT has given direction to the assessing officer to complete the assessment after examination of the details - Held that:- From the assessment order, it is established that the assessing officer has examined the taxability of interest on postal deposits, agricultural loans and construction of building account and taken a conscious decision in respect of agricultural loans and the cost of construction of building that no addition is warranted and the transactions were genuine. With regard to the agricultural loan, AO stated that all the evidences were filed and examined. With respect to the construction account, the assessing officer examined the details and also obtained the Govt. valuer's report and accepted the cost of construction. Prima facie, the assessing officer has conducted the necessary enquires, verified the information and taken the conscious decision before completing the assessment. However, Pr.CIT was of the view that the assessing officer has not conducted proper enquiries and there was apparent error of reasoning and law but not specified the error committed by the AO and how it was prejudicial to the interest of revenue. Not conducting the proper enquiries or inadequate enquiry does not give jurisdiction to the CIT for taking up the case for revision u/s 263. Pr.CIT should make out case that the assessment order passed by the AO was erroneous and prejudicial to the interest of revenue. There should be an income which is not brought to tax by AO for revision. Pr.CIT except stating that proper enquiries were not conducted by the AO, did not specify how the order is erroneous and prejudicial to the interest of the revenue and what was the income understated or under assessed by the AO. Since the assessing officer has conducted the enquiries and taken the decision on all the above issues there is no case of revision. - Decided in favour of assessee.
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