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2017 (2) TMI 229 - HC - Income TaxRevision u/s 263 set aside by Tribunal - Held that:- Tribunal has evidently failed to make a distinction between an inference and a presumption. Even in the case of a trial when the question arises as to whether a fact has been proved or not, the question has to be answered on the basis as to whether the evidence adduced probabilises the claim or contention of the plaintiff or the defendant, as the case may be. The learned Tribunal failed to notice the facts, which were not in dispute and have not also been disputed before us, which we have quoted above. It was only reasonable to infer that an attempt might have been made to reduce the income by booking fictitious loss. The Commissioner of Income-tax could not have recorded any definite finding in respect of a matter which he intended to refer to the Assessing Officer for further investigation. After recording a final opinion that the loss was in fact fictitious there would be no point in remanding the matter to the Assessing Officer. There can be no doubt that merely on the basis of presumption or surmise or suspicion, an order under section 263 cannot be passed. The learned Tribunal failed to appreciate that in this case the inference drawn by the Commissioner of Income-tax was not based either on presumptions or surmises or suspicion. It is true that the assessee has no hand nor has any say with regard to the notings to be made by the Assessing Officer in his order sheet. But that does not mean that an assertion that everything was looked into by the Assessing Officer has to be accepted even though such assertion is either opposed to the admitted facts and circumstances of the case or when the assessee fails to prove, by adducing circumstantial evidence, his assertion. For the aforesaid reasons, we are of the opinion that the learned Tribunal has not applied its mind to all the relevant materials and has not considered the same and therefore the conclusion drawn is perverse. - Decided in favour of revenue
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