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2019 (1) TMI 996 - AT - Income TaxRevision u/s 263 - setting aside the assessment order framed u/s 147/ 143(3) - receipt of accommodation entries - order erroneous and prejudicial to the interest of revenue - scope of amendment made to the provision of section 263 - Held that:- There is a startling fact that seized material found during the course of search on the premises of the accommodation entry provider which shows that the credit in the books of account of the assessee are accommodation entries and such an important piece of evidence was the main reason of the opening of the assessment by issuing notice u/s 148 of the Act was not at all considered by the AO while making assessment u/s 147 of the Act. It was not at all confronted to the assessee as well as to the Directors of the depositor companies u/s 131 of the Act. It is further noted that all these decisions are not concerned with the amendment made to the provision of section 263 of the Act w.e.f. 01.06.2015 by the Finance Act 2015 wherein, the explanation 2 is inserted which even otherwise makes the order passed without making enquiries or verification which should have been made by the Assessing Officer are deemed to be erroneous insofar as it is prejudicial to the interest of the revenue. The impugned order passed by the ld CIT u/s 263 of the Act on 17.03.2017 also gets a statutory support from the above amendment. No infirmity in the order of the ld Pr. CIT in passing order u/s 263 of the Act - decided against assessee
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