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2018 (11) TMI 116 - AT - Income TaxRevision u/s 263 - no effort was made by AO to know the reasons for low net profit, no examination of the increase of unsecured loans and not verified the closing stock of finished goods as there were no supporting documents - Proof of AO's order to be erroneous and prejudicial to interest of revenue - Held that:- It is not the Department’s case that no information regarding the issues raised by the Pr. CIT was called for by the AO. It is undisputed that relevant details and documents were furnished by the assessee during the assessment proceedings and forms part of the record. Hence, no inference can be drawn that the AO has not examined the issue although he has not expressed it in as many terms as may be considered appropriate by his superior authority and even if the same is found to be inadequate the same cannot be a ground for revision. It is clear that an order cannot be termed as erroneous unless it is not in accordance with law. This section does not visualize a case of substitution of the judgment of the Commissioner for that of the AO. Therefore, it cannot be held that in the instant case the AO’s order was erroneous and prejudicial to the interest of the revenue within the terms of section 263 of the Act - decided in favour of assessee.
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