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2023 (5) TMI 1292 - AT - Income TaxRevision u/s 263 - assumption of jurisdiction by CIT presuming, and merely on basis of audit objection and lack of enquiry by the AO - HELD THAT:- From the order of the PCIT passed u/s 263 it is observed that in the show cause notice he raised certain issues and made observations to which the assessee gave reply in seriatim followed by legal submissions but not a word thereupon has been mentioned by the Ld. PCIT. This is contrary to the law laid down in PCIT vs. Delhi Airport Metro Express Pvt. Ltd. [2017 (9) TMI 529 - DELHI HIGH COURT] wherein the Hon’ble Jurisdictional High Court held that for purposes of exercising jurisdiction u/s 263 the conclusion that the order of the AO is erroneous and prejudicial to the interests of the Revenue has to be preceded by some minimal enquiry. In fact, if the Ld. PCIT is of the view that the AO did not undertake any enquiry, it becomes incumbent on him to conduct such enquiry. Nothing of the sort has been done by the Ld. PCIT in the case of the assessee before us. In Synergy Waste Management (P) Ltd. [2016 (6) TMI 23 - ITAT DELHI] is held that if an AO, acting in accordance with law, makes a certain assessment, the same cannot be branded as erroneous by the Commissioner simply because according to him the order should have been written more elaborately. Section 263 does not visualise a case of substitution of the judgment of the Commissioner for that of the AO. In our opinion this cannot be done as in the show cause notice the Ld. PCIT has nowhere mentioned to invoke the Explanation 2 to Section 263. Likewise, the assessee cannot take a plea of assumption of jurisdiction by the Ld. PCIT on the basis of audit objection without there being any material in the record to substantiate the plea. We are of the view that the Ld. AO made enquiries and after applying his mind he completed the assessment under section 143(3) of the Act accepting the income declared by the assessee in its return. Appeal of assesee allowed.
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