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2019 (7) TMI 1589 - AT - Income TaxRevision u/s 263 - question of having a debit balance in the provisions of bad-debts and doubtful debts account not decided by AO - HELD THAT:- Assessee vehemently submitted that against the partial disallowances of bed debts the assessee filed appeal before First appellate authority and that in view of clause (c) of Explaination-1 of section 263 the ld PCIT was precluded to revised the assessment order on the subject matter of appeal. We have seen that the assessee while filing the reply to the show cause notice under section 263 has specifically brought this fact in the notice of ld PCIT, which has been duly recorded by ld PCIT in his order. However, the ld PCIT failed to address the objection raised by the assessee that their appeal on the similar issue is pending before ld CIT(A). This fact was not disputed by ld. CIT-DR for the revenue. Before the Commissioner of Income-tax exercises the jurisdiction under section 263 of the Act, the Commissioner of Income-tax is required to ascertain whether the order referred to in sub-section (1) of section 263 of the Act had been the subject-matter of any appeal, and if yes, the revisional powers shall be available only if such subject-matter had not been considered and decided in such appeal. The order passed by ld. PCIT under section 263 was not a valid order in the eyes of law, which we quashed. - Decided in favour of assessee
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