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2022 (5) TMI 1482 - AT - Income TaxRevision u/s 263 - exemption u/s.11 - claim of depreciation by assessee trust - Allegation of no enquiry - HELD THAT:- When the facts as emerging or revealed out of the scrutiny alongwith explanation and reply of the assessee are apparently in order, and no further inquiry is warranted in his bonafide opinion, he need not conduct further inquiries just because it is lawful to make further inquiries in the matter. AO has issued notice u/s.142(1) alongwith questionnaire asking the assessee details and basis of claim of depreciation as application income of the assessee, which was replied by the assessee and the assessment records/folders for immediately preceding several years must be with the AO as it clearly revealed that the assessee is consistently claiming the depreciation as application of income without making the claim u/s.11 of the Act at the time of acquisition or purchase of assets as application of income, then the AO was not required to go further to analyse and examine the issue and he is duty bound to follow the rule of consistency which the AO has done in the present case. It is not a case of no enquiry but the AO has made proper, sufficient and adequate enquiry on the issue of allowability of claim of depreciation. CIT (E) was not right in passing the impugned revisionary order u/s.263 of the Act in violation of principles of natural justice alleging the assessment order as erroneous and prejudicial to the interest of the revenue and directing the AO to redo the assessment without making an enquiry himself. In the case of CIT vs Jyoti Foundation [2013 (7) TMI 483 - DELHI HIGH COURT] ITO vs DG Housing Projects Ltd [012 (3) TMI 227 - DELHI HIGH COURT] & Pr. CIT vs Delhi Airport Metro Express Pvt Ltd. [2017 (9) TMI 529 - DELHI HIGH COURT] we are inclined to hold that the impugned revisionary order of ld CIT is not sustainable being bad in law and passed in violation of principles of natural justice. Therefore, the impugned notice u/s.263, revisionary order and all consequential proceedings and orders thereto are hereby quashed. Appeal of the assessee is allowed.
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