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2017 (7) TMI 1390 - AT - Income TaxRevision u/s 263 - verification of purchases - Outstanding sundry creditors - assessee was making payment for purchase after ten months or one year which is not normal in the business practice - HELD THAT:- AO asked for details of payment to sundry creditors outstanding as on 31-03-2012 exceeding ₹ 1 lacks per party with evidence of payment subsequently. Assessee filed statements giving details of subsequent payments to the sundry creditors exceeding ₹ 1 lacks and also produced copies of ledger accounts of these parties for subsequent assessment years wherein the payment received from assessee through banking channels is reflected. As regard to the query of the AO that the assessee has received credits on account of purchased from parties, it was explained that the assessee group including the partners independently is developing various projects in which substantial purchases were made and therefore having good business relations with these parties and due to that is availing credit facility. AO examined the aspect in detail in the course of assessment proceedings and did not find any anomaly in the details furnished before him and accordingly has not taken any adverse view of the matter. We find that the complete details were examined by the AO during the course of assessment proceedings and now CIT through this revision order want to re-examine this issue, which according to us is not permissible u/s 263. Unsold flats - HELD THAT:- As explained before us that only part of total sale consideration is received in this year i.e. the advance or earnest money for purchase of flat by the prospective buyer and full consideration is received only in subsequent years. And in subsequent years this sale is reflected as revenue by crediting the same to the P&L Account. The assessee has filed complete statements and details of sale of various units as on 31-03-2012 in subsequent years and the same has been examined by the AO The assessee before us also filed copies of assessment orders passed u/s 143(3) of the Act for AYs 2013-14 and 2014-15, during which years the assessee has disclosed the sale consideration of these flats when actually these were sold. We find that on merits as well as on the issued at the matter was examined by the AO during the course of assessment proceedings, the revision proceeding initiated by the CIT(A) u/s 263 of the Act and revision order passed is not as per the provision of law. As decided in MAX INDIA LTD. [2007 (11) TMI 12 - SUPREME COURT] where two views are possible and the AO has taken one of the possible view, with which CIT does not agree, it cannot be treated as erroneous order so as to prejudicial to the interest of Revenue. We are of the view that the revision order passed by CIT u/s 263 of the Act is without any basis and void. - Decided in favour of assessee.
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