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2019 (2) TMI 292 - HC - Income TaxRevision u/s 263 - power of CIT for assessment in revision order - Held that:- The only limitation on CIT's power is that he must have some material which would enable him to form a prima facie opinion that the order passed by the officer was erroneous in so far as it is prejudicial to the interests of the revenue. Once he concludes on the basis of the material that the order of the AO was erroneous and prejudicial to the interests of the revenue, the CIT is empowered to pass an order as the circumstances of the case may warrant. He may pass an order enhancing the assessment or he may modify the assessment. He is also empowered to cancel the assessment and direct a fresh assessment. CIT is fully competent to adopt any one of the three causes indicated by the said provision. CIT while coming to the conclusion that declared income is to be enhanced by ₹ 1,83,80,208/- had dealt with the matter in detail before so concluding. It is considered appropriate to direct the Registry of this Court to forward a copy of this order to the Central Board of Direct Taxes (CBDT) to issue necessary instructions to all the Assessing Officers that in cases of search and seizure or where survey operations have been carried out by the Department and surrender made or concealed income detected, to ensure proper scrutiny of such cases and discuss reasons for rejecting or accepting the books of account of the assessee and not to merely record in slipshod or cursory manner that ‘the books of account produced and test checked’ as done by the AO in the present case.
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