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2016 (3) TMI 1425 - AT - Income TaxRevision u/s 263 by CIT - assessee firm was beneficiary of hawala transactions - lack of proper enquiry or case of lack of enquiry - case of the assessee was picked up for scrutiny - As per CIT AO had failed to verify the transactions and had accepted the books of account and the financial results at face value - HELD THAT:- AO issued a questionnaire to the assessee to furnish complete details in respect of purchases made by the assessee. In reply, the assessee not only filed date-wise details of purchases, but also filed confirmations from the parties from whom the said purchases were made. The said details include purchases made from Sampark Steels, Prayan Trading Co., Vitarag Trading Co. and Siddhivinayak Steel. The relevant details and information is filed by the assessee in the Paper Book - perusal of assessment order reflects that the AO had made elaborate enquiries in respect of transportation of purchases, where the Assessing Officer had considered all the particulars filed before him and had also noted the various aspects of transactions i.e. the transport of the goods purchased by the assessee and had also enhanced income in the hands of assessee. Merely because elaborate discussion has not been made by the Assessing Officer on this aspect does not make the order passed by the Assessing Officer as being accepting transactions at face value. AO had made enquiries in the case and had discussed the aspect of transportation of goods in the assessment order elaborately, but had not discussed the information and details filed by the assessee with regard to purchases, does not make the order passed by the Assessing Officer to be a prima facie case of assumption of incorrect computation of income or under assessment of income. We find support from the ratio laid down by the Hon’ble Bombay High Court in CIT Vs. Gabriel India Ltd.[1993 (4) TMI 55 - BOMBAY HIGH COURT] The order passed by the AO cannot be said to be erroneous or passed on assumption of incorrect computation of income on the ground that the Assessing Officer had failed to carry out the exercise of verification of transactions with the said four parties involving purchases.assessee himself has filed the confirmations from the said parties, which are available on record. Further, evidence of transportation of the goods also have been filed which have been taken note by the Assessing Officer and elaborately recorded the same in the assessment order. May be, it can be the case of lack of proper enquiry, but it is not the case of lack of enquiry and once enquiry has been made by the Assessing Officer and he has taken one view, the same cannot be set-aside by the Commissioner since he does not agree that the view taken by the Assessing Officer was a possible view. - Decided in favour of assessee.
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