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2016 (10) TMI 925 - AT - Income TaxRevision u/s 263 - an order prejudicial and erroneous to the revenue - Held that:- It is a general presumption of law that the A.O. has considered all the details before completion of assessment and the CIT cannot presume that the enquiries conducted by the A.O. is insufficient and also the A.O. has not applied his mind, unless CIT categorically proves that the assessment order passed by the A.O. is erroneous. Though, the A.O. made further disallowance in the consequential proceedings towards cash expenditure under the head “contract work expenses” which earns more revenue to the department which is only disallowed on estimation basis for want of further bills and vouchers. To this extent, the order passed by the A.O. may be prejudicial to the interest of the revenue, but it is not erroneous, because the A.O. has examined the above issues at the time of completion of assessment u/s 143(3) of the Act, which is evident from the assessment order, wherein the A.O. has specifically discussed about the work contract expenditure. Under the provisions of section 263 of the Act, the CIT can assume jurisdiction once the assessment order passed by the A.O. is erroneous and also it is prejudicial to the interest of the revenue. In the present case on hand, though the order passed by the A.O. is prejudicial to the interest of the revenue but it is not erroneous, therefore, the CIT cannot assume jurisdiction to revise the assessment order passed by the A.O. u/s 143(3) of the Act. The assessment order passed by the A.O. u/s 143(3) of the Act dated 9.1.2013 is not erroneous in so far as it is prejudicial to the interest of the revenue. Therefore, we quash the order passed by the CIT u/s 263 of the Act and restore the order passed by the A.O. u/s 143(3) of the Act. - Decided in favour of assessee
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