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2014 (12) TMI 1370 - AT - Income TaxRevision u/s 263 - HELD THAT:- The section starts from the wordings, “The Commissioner may call for and examine the record of any proceeding under the Act …”. Here we have to make a distinction between record and order, because, both these terms have distinct connotations. An order is the mind of the AO/Officer to incorporate or not to incorporate any point in the order, whereas the record forms the basis for formation and construction of the order. It is the record of the case, from which, one can ascertain, as to whether the AO had conducted adequate enquiry to form a legally correct inference. It is, then upto the AO/revenue authorities to incorporate his inference drawn in the order. DR could neither elaborate nor assist us to convince us that the inference drawn by the AO, after conducting exhaustive enquiry was an erroneous view. We also find that the CIT did not initiate the proceedings himself but initiated the proceedings on the proposal received from the AO. This in our opinion, too is against the legislative spirit, because, the provision contemplates independent application of mind by the CIT, because the section says “Commissioner may call for and examine the records of any proceedings under the Act and if he considers …”, which means that the proposal for initiation of revision proceedings must be initiated by the CIT, because, it is the CIT who has to call for examine the record”, as held by the Coordinate Bench in the case of Ashok Kumar Shivpuri [2014 (11) TMI 1176 - ITAT MUMBAI] Looking at the issue from this angle also, the initiation of revision proceeding become infirm and illegal. - Decided in favour of assessee.
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