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2018 (9) TMI 213 - AT - Income TaxRevision u/s 263 - eligible for deduction under section 54F - Held that:- AO had enquired about the source of income of the assessee and assessee had replied regarding each and every source of income and it cannot be said that on this share trading business no enquiry was conducted by the Assessing Officer. Facts available on record on the contrary spell out that adequate enquiry was conducted by AO and entire source of income was in the knowledge of the Revenue. Assessee has not only stated that he was into share trading but also stated that for the last eight years he is not doing share trading business and he has also provided address of the trading office which he agrees that is still in existence at Ahmedabad. These evidences clearly show that factual verifications were conducted by the Assessing Officer. Even after insertion of Explanation 2(a) to section 263 of the Act, the wisdom enshrined in various judicial pronouncements shall still hold good, that is to say that even now also the Commissioner of Income Tax cannot have unfettered power or unlimited power under section 263 of the Act. If such power is allowed, then Assessing Officer shall never be applying his mind in a free and judicious way which he is required to do. Furthermore, if unlimited power is assigned to the Commissioner of Income Tax through Explanation 2 to section 263 of the Act, that would lead to innumerable litigations. So far as deduction under section 54F is concerned, the order of the Pr. Commissioner of Income-tax passed under section 263 is valid in view of the proviso to section 54F whereas regards the other issues are concerned, they have been already examined by the Assessing Officer and for them there is no applicability of revisional jurisdiction under section 263 by the Pr. Commissioner of Income-tax and to that extent i.e. share trading business of the assessee and the loan transaction from brother of the assessee, for these issues, we quash the order under section 263 of the Act.
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