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2016 (3) TMI 643 - AT - Income TaxRevision u/s 263 - Held that:- AO has applied his mind or not need not necessarily be determined from what has been stated in the assessment order alone, it has to be examined as to whether any inquiry was at all conducted by the AO. There exists a difference between lack of inquiry and inadequate inquiry. If there were any inquiry, even inadequate that would not give an occasion to exercise jurisdiction u/s 263 of the said Act. Accordingly, order passed by Ld. CIT u/s 263 of the Act is reversed hence, ground No. 1 to 6 raised by assessee is allowed. Regarding the issue of remuneration paid to the employees CIT found that necessary enquiries were not made by AO at the time of assessment as required u/s. 40A(2)(b) of the Act. However we find that the provisions of section 40A(2)(b) does not apply in the instant case as the payment has not been made to the persons referred in the said section. Besides the ld. AR submitted that the necessary enquiry has been made by the AO at the time of assessment. On the other hand the ld. DR failed to controvert the arguments of the ld. AR. In view of we reverse the order of the ld. CIT(A) under section 263 of the Act. - Decided in favour of assessee
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