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2019 (4) TMI 400 - AT - Income TaxRevision u/s 263 by CIT - Long term capital gain allowed by AO - proof of AO's order as erroneous in so far as being prejudicial to the interest of the revenue - HELD THAT:- AO had made detailed inquiries regarding the assessee’s claim of long term capital gain and, thereafter, after considering the reply submitted by the assessee, the Assessing Officer had made further inquiries also which is evident from the copy of questionnaire as well as the reply thereto which has been placed in the Paper Book filed by the assessee before us. Thus, in view of the documentary evidences as called for and examined by the AO, it is very much evident that the AO had applied his mind to the issue of long term capital gains and it was only after having been satisfied with the correctness of the claim that he accepted the return filed by the assessee. Therefore, we can safely conclude that proper inquiries had been made by the AO while accepting the claim of the assessee and, therefore, the contention of the Pr.CIT that no inquiry was made by the AO is factually incorrect. It is not the case where no inquiry has been made by the AO. Merely because the Ld. Pr. CIT felt that further inquiry should have been made does not make the order of the Assessing Officer erroneous and prejudicial to the interest of the revenue. Pr.CIT has merely remitted the matter back to the AO without making any inquiry himself. It is apparent that no independent inquiries have been made by the Pr.CIT although it was incumbent upon him to make such inquiry so as to reach the conclusion that the order of the Assessing Officer was erroneous and prejudicial to the interest of the revenue - Pr.CIT had wrongly invoked the revisionary powers u/s 263 - Decided in favour of assessee.
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