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2017 (9) TMI 185 - HC - Income TaxRevision u/s 263 - valuation of stock - both the conditions namely order passed by the AO is erroneous and prejudiced to the interest of the Revenue must be satisfied- Held that:- Admittedly, in the present case earlier a survey action was carried out on the respondents on 20/02/2009 and thereafter regular assessment was made under Section 143(3) on 25/11/2011. It is also admitted that the physical stock as on 20/02/2009 was taken by the Assessing Officer, which is available on record. When such physical verification of stocks was carried out during the period of regular assessment the question of now valuing the stock and adding 10% for every annum is not at all justified. The manner of such estimate of stock on the basis of last year G.P. of 10% as again the books which were accepted by the Assessing Officer earlier cannot be accepted. The learned Tribunal as such rightly found that the question of taking the impugned action in terms of Section 263 of the said Act would not at all be justified. When an Assessing Officer has proceeded in a particular manner and the Assessing Officer has followed one of the permissible processes in law which has resulted in loss of revenue, it cannot be said to be prejudiced to the revenue and as such, we find there is no substantial question of law which arises in the present appeal.The learned Counsel appearing for the appellant was unable to point out in what manner the assessment by Assessing Officer was erroneous. - Decided in favour of assessee.
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