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2023 (7) TMI 1354 - AT - Income TaxRevision u/s 263 - Inadequate or non enquiry - unsecured loan - CIT noted that a perusal of the assessment record shows that the AO has not made any independent inquiry regarding the confirmations - HELD THAT:- We note that the AO has made an inquiry and has obtained the bank statement of the party and necessary confirmation. In response to queries raised, in the course of the assessment proceedings, the Assessee had filed all material particulars. CIT has thus acted casually. Therefore, exercise of supervisory jurisdiction is wholly unjustifiable on the issue without making reference to circumstances which warrants necessity of some more enquiries. AO in the instant case, has made enquiries albeit not probably in the manner in which the CIT would have liked but this cannot be the sacrosanct ground for assumption of jurisdiction u/s 263 of the Act. Under these circumstances, one cannot possibly say that AO had sleepwalked on the issues involved. Noticeably, the Ld. CIT himself has not entered into any minimal inquiry on the issues himself, if so considered expedient and there is not even prima facie demonstration of fallacy in the action of the Assessing Officer which rendered the order erroneous and which also simultaneously caused prejudice to the revenue. Merely because the expectations of the Revisional Commissioner are purportedly not met, it should not, in our opinion, necessarily trigger revisional action under Section 263 of the Act in every case. CIT has also invoked provisions of section 263 including explanation 2(a) which is effective from 01.06.2015 and it cannot be applied in the current assessment year. Hence, the Ld. CIT’s reference to explanation 2(a) does not support the case of the Revenue. This is not a case of non-inquiry, the AO has made inquiry, thus we find that the ld. CIT’s order cannot be sustained - Decided in favour of assessee.
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