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2015 (7) TMI 1365 - AT - Income TaxRevision u/s 263 - Disallowance of purchases - rejection of books of accounts - HELD THAT:- AO had made inquiries about the purchases made by the assessee in pursuance of the information received form the Sales tax department, that he had issued a detailed notice to the assessee in that regard, that he had also recorded the statement of the director of the company, that he made certain disallowance with regard to purchases.In these circumstances, we are of the opinion that it was not case of no inquiry. AO had adopted a particular method to deal with the alleged purchases.If the CIT was of the opinion that the assessment should have been passed after making inquiries in different manner then it cannot held that the order of the AO was erroneous or prejudicial to the interest of Revenue. It is possible that had the AO made the inquiries as desired by the CIT he would have collected higher revenue.But, that alone would not justify the invoking of the revisionary powers by the CIT.As the AO had applied his mind and passed the order after rejecting the book of accounts u/s. 145(3) of the Act, so, we are of the opinion that the order of the AO was not neither erroneous nor prejudicial to the interest of the Revenue. - Decided in favour of the assessee.
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