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2016 (5) TMI 417 - AT - Income TaxRevision u/s 263 - allowability of expenditure challenged by CIT (A) - Held that:- CIT had not given a concluding finding about allowability of the expenditure but has observed that the AO has not examined the issue from the point of allowability and the nature of expenditure. Even genuineness of the expenditure has not been examined by the AO while passing the impugned order. Thus it is clear that it is a case of lack of inquiry on the part of the AO while passing the impugned assessment order u/s 143(3). Further, neither the AO has raised any query nor the assessee furnished the relevant record and details pertaining to the issue under consideration. There is no quarrel that complete lack of inquiry on the part of the AO renders the order of the AO erroneous and so far as prejudicial to the interest of the revenue. Thus, in the facts and circumstances of the case, we find that when there is a lack of inquiry on the part of the AO as well as non-application of mind while passing assessment order and particularly on the issue which is the subject matter of the revision proceedings, then the CIT was justified in invoking the jurisdiction u/s 263 of the Act The CIT has not given any concluding finding on the allowability of the said expenditure for want of complete details and record therefore, the issue was remitted to the AO with the direction to be decided in accordance with law. When the assessee has not furnished complete details of this expenditure, we do not find any error or illegality in the impugned order of the CIT remanding the issue to the record of the AO for making proper inquiry and verification. - Decided against assessee
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