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2016 (10) TMI 598 - AT - Income TaxValidity of revision order u/s 263 - Held that:- PCIT had issued the show cause notice u/s 263 even without examining the assessment records. Such type of practice is contrary to transparent and fair working and not appreciated in the eyes of law. The assumption of jurisdiction u/s 263 is based upon a valid show cause notice issued u/s 263. The entire premise of the Ld. Principal CIT in issuing show cause notice u/s 263 for holding the impugned assessment order as erroneous and prejudicial to the interest of the revenue is built upon incorrect facts. Further, no proper allegation could be made against the assessee by the Ld. PCIT while framing order u/s 263. Inspite of exhaustive exercise done in the 263 proceedings, the ld. PCIT could not find anything to hold that the impugned loss was not allowable at all by any stretch of imagination under the law. When exhaustive details and documentary evidences were submitted by the assessee before the AO and the assessment order was framed after examining the exhaustive details and evidences, the recourse available for the Ld. PCIT for revision u/s 263 to was to hold that the loss has been wrongly allowed by the AO and view taken by the AO was not at all a plausible view in the eyes of law. Unless such a finding is recorded by Ld. PCIT, especially where exhaustive exercise has been done by the AO, the order of the AO in allowing the impugned loss could not have been held to be erroneous. Same is missing here, Thus, we find that the order passed by the Ld. PCIT is without application of proper mind and beyond the parameters of law and we find the same to be nullity in the eyes of law and the same is, therefore, hereby quashed. - Decided in favour of assessee
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