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2019 (4) TMI 958 - AT - Income TaxRevision u/s 263 - return income of the assessee was accepted by the AO without carrying out ‘proper and necessary enquiries’ regarding unsecured loans received by the assessee during the year from one Satish Chander Gupta, Chandigarh - ‘lack of enquiry’ or ‘prejudice’ - HELD THAT:- Assessment u/s. 143(3) of the Act was framed by the Assessing Officer after obtaining necessary details from the assessee and further the same were examined by him. Therefore, even if, the same has not been spelt elaborately in the assessment order it cannot be said that there is a ‘lack of enquiry’ or ‘prejudice’ has been caused to the Revenue, as we have discussed various case laws in earlier part of this order which are identical to the facts before us. Even otherwise in the case of Narayan Tatu Rane vrs. ITO [2016 (5) TMI 1162 - ITAT MUMBAI] it was held that newly inserted explanation-2(a) to section 263 does not authorize or give unfettered powers to the Commissioner to revise each and every order, if in his opinion, the same has been passed without making enquiries or verifications which should have been made. Even from the records, we notice that the assessee by way of exhaustive reply filed with the CIT in respect of all the aforesaid issues, on the basis of which the order passed by the AO was sought to be revised, had thus furnished clarifications as regards all the said issues and demonstrated that the assessment order was not ‘erroneous and prejudicial to the interest of revenue‟. However, the Ld. CIT without pointing out any infirmity in the reply /explanation of the assessee, and as to why the same could not accepted had rather hushed through the matter and concluded that the assessment order passed by the AO was found to be ‘erroneous and prejudicial to the interest of revenue’. By no stretch of imagination, the assessment order can be termed as ‘erroneous’ and or ‘prejudicial to the interest of revenue’ and are required to be satisfied for invoking the provisions of section 263 of the Act - Decided in favour of assessee.
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