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2016 (11) TMI 1057 - AT - Income TaxRevision u/s 263 - CIT observed that no enquiry at all was conducted by the AO - AO computed the Capital Gains u/s 50B - Held that:- In the present case the assessee had submitted a detailed explanation along with relevant details assessment order was passed by the AO, prima facie on being satisfied with the explanation of the assessee. In the present case the learned CIT has passed the order u/s 263 by concluding that the order passed by the AO is erroneous to the interests of the Revenue without providing a fulcrum for such a claim or justify such a claim has been made. As noticed from the facts of the present case that simply because the AO in his order did not make an elaborate discussion or did not call for any further details, that by itself cannot be a ground to hold the order passed by the AO to be ‘Erroneous” for lack of enquiry. From a careful perusal of the record, we have also noticed that enquiries were conducted by the AO and, therefore, in such a circumstance, the learned CIT cannot be allowed to wrongly assume jurisdiction u/s 263 of the Act under the “Guise” of AO’s failure to conduct any further enquiry. The learned CIT has passed his order on this issue on the ground that no enquiry at all was conducted by the AO. After perusal of the record, we noticed that the stand taken by CIT is incorrect. The records of assessment establishes that an enquiry was conducted by the AO and the assessee had also participated and filed reply before the AO on this issue. We are of the considered view that in the present case on the issue of computation of capital gains and depreciation, the AO has conducted enquiries and the assessee had also submitted the detailed explanations and evidently the claim was allowed by the AO on being satisfied with the explanations of the assessee. Therefore, the learned CIT in the present case has wrongly assumed jurisdiction u/s 263 of the Act on all the issues raised by the assessee - Decided in favour of assessee
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