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2018 (3) TMI 1906 - AT - Income TaxRevision u/s 263 - proof of inadequate inquiry - distinction between lack of inquiry and inadequate inquiry - HELD THAT:- In the instant case, the error of ‘lack of necessary inquiry’ made out by the Commissioner is based on the cash summary/statements prepared by him after procuring the copies of the bank statements, etc., a material which was not available on record of the proceedings at the time of initiation of proceedings u/s 263 of the Act. At the relevant time of initiation of Sec. 263 of the Act, what was available on record were the communication of the Assessing Officer dated 03.01.2013 seeking remedial action u/s 263 of the Act and this too was contradictory to the earlier communication of the Assessing Officer dated 26.06.2012, which we have referred in the earlier part of this order. Such examination of the record, in our view, even prima facie, would not establish the fulfilment of the twin conditions contained in Sec. 263(1) of the Act. Therefore, in our view, the initiation of proceedings by the Commissioner u/s 263(1) of the Act is legally infirm and beyond jurisdiction. The Hon'ble Delhi High Court in the case of New Delhi Television Ltd.[2013 (10) TMI 428 - DELHI HIGH COURT] by referring to its earlier decision in the case of CIT vs Sunbeam Auto Ltd.,[2009 (9) TMI 633 - DELHI HIGH COURT] noted the distinction between purported ‘no verification’ by the Assessing Officer and ‘incomplete or inadequate verification’. The Hon'ble High Court emphasised the distinction between lack of inquiry and inadequate inquiry. According to it, if there was an inquiry, even inadequate, that would by itself not give an occasion for the Commissioner to invoke Sec. 263 of the Act merely because he has a difference of opinion in the matter. Insofar as the present case is concerned, in our considered opinion, even the charge of inadequate inquiry by the Commissioner is not based on his examination of the record of proceedings, but on his subjective analysis of the records called for by him subsequent to initiation of the proceedings u/s 263(1) of the Act. - Decided in favour of assessee.
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