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2018 (12) TMI 1877 - AT - Income TaxRevision u/s 263 - Whether twin conditions of the assessment order being erroneous as well as prejudicial to the interests of the Revenue are to be satisfied? - HELD THAT:- AO had called for the details during the assessment proceedings and had further issued a notice u/s 154 and after being satisfied, has dropped the 154 proceedings. Therefore, it is clear that the AO has applied his mind to the information filed by the assessee and therefore, the assessment order cannot be said to be erroneous. The issues raised by the CIT as the mistakes/discrepancies are of factual nature and not against the law, therefore, for this reason also, the assessment order cannot be said to be erroneous. We also agree with the contention of the learned Counsel for the assessee that the CIT cannot direct the AO to redo the assessment without pointing out the errors committed by the AO and without giving a finding as to how the assessment order is erroneous. From the literal reading of the order u/s 263, we find that the CIT pointed out certain discrepancies and then subsequently reproduced the assessee’s submissions and then directed the AO to redo the assessment. Thus, there is no finding whatsoever, as to whether the assessee’s contentions were acceptable to him or not and as to how the assessment order is erroneous. Therefore, the revision order passed by the Pr. CIT is not sustainable. The assessee’s appeal is accordingly allowed.
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