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2016 (3) TMI 645 - AT - Income TaxRevision u/s 263 - Held that:- There is no discussion of whatsoever in his assessment order. He accepted the return of income of ₹ 9,49,940/- as income determined by the assessee. We cannot say what enquiry the AO has made to accept the return of income as true and correct. There are no details what kind of enquiry AO has made, how he has formed the opinion to accept the return of income as filed by the assessee. Then, the CIT empowered to initiate the suo moto proceedings u/s.263 of the Act either where AO takes wrong decision without considering material available on record or he takes a decision without making an enquiry into matters, where such enquiry was prima facie warranted. In the present case, the CIT has invoked the provisions of the section 263 of the Act on the reason that there was utter failure on the part of the AO to carry out necessary enquiry while completing he assessment on 30.12.2012 because of non-enquiry and non-application of mind by the AO. The Ld. CIT is justified in invoking the jurisdiction u/s.263 of the Act. Further, the CIT has not formed any opinion and he has cancelled the order of AO by directing to redo the assessment afresh after giving assessee a reasonable opportunity of being heard. Being so, we are of the opinion that the Ld. CIT is justified in invoking the jurisdiction u/s.263 of the Act. Since we have confirmed the invoking of jurisdiction u/s.263 of the Act, there is no finding by CIT on merit; whatever grievance of assessee on merit of issue raised by the CIT, to be considered by AO while framing assessment and AO shall not influence by anyway by the observation of CIT in his order. - Decided against assessee
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