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2018 (1) TMI 1189 - AT - Income TaxRevision u/s 263 - addition of commission - Held that:- Order without making enquiries on the issues in question is liable to be held as erroneous insofar as it is prejudicial to the interest of the Revenue. In the instant case, assessee has failed to produce any evidence of any enquiry carried out by the Assessing Officer on the issue of commission income or interest expenditure and, thus, in our opinion, the Ld. CIT has validly assumed jurisdiction under section 263 of the Act. As argued that on the issue of commission the Assessing Officer has examined the matter subsequently and in the assessment order passed in compliance to 263 proceedings, no addition has made and, therefore, to the extent the jurisdiction assumed by the Ld. CIT under Section 263, we are not convinced with this argument of the Ld. counsel. The validity of the assuming jurisdiction under Section 263 of the Act is decided whether the Assessing Officer carried out any enquiry on the issue in original assessment proceedings. If he did not carry out any enquiry in the original assessment order, that order is erroneous and prejudicial to the interest of the Revenue and the CIT has assumed the jurisdiction validly. The subsequent action of the Assessing Officer of making no addition after examination of the issue, cannot make the action of the Ld. CIT under Section 263 of the Act, invalid. - Decided against assessee.
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