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2019 (6) TMI 985 - ITAT MUMBAIRevision u/s 263 - AO had failed to examine the applicability of provisions of section 56(2)(vii)(b)(ii) - purchase of shops on less than stamp valuation - HELD THAT:- On a perusal of the material available on record, including the impugned assessment order, we find not even a hint of any enquiry conducted by the AO for examining the applicability of the aforesaid provision to the purchase of shops by the assessee. In fact, in the grounds raised in the present appeal, the assessee has not raised any ground with regard to the applicability of section 56(2)(vii)(b)(ii). The only submission made by AO having completed the assessment after conducting necessary enquiry with regard to the purchase of shops, the assessment order cannot be held to erroneous and prejudicial to the interests of Revenue. The facts on record clearly reveal that the AO has completely failed to examine the applicability of section 56(2)(vii)(b)(ii) to the subject transactions. Thus, non–examination / non consideration of applicability of the aforesaid provision makes the assessment order not only erroneous but prejudicial to the interests of Revenue. Therefore, in our considered opinion, learned Principal CIT has correctly exercised his power under section 263 to revise the assessment order. We may observe that while setting aside the assessment order CIT has not expressed any opinion with regard to applicability of section 56(2)(vii)(b)(ii). Rather he has directed the AO to make necessary enquiry keeping in view the provision of section 56(2)(vii)(b)(ii). Therefore, it is open for the assessee to make all submissions available to it to demonstrate that the provisions of section 56(2)(vii)(b)(ii) is not applicable to the subject transactions. We further direct the AO to consider the submissions made by the assessee on its own merits and decide the issue after dealing with all the submissions made by the assessee by a well-reasoned and speaking order. - Decided against assessee.
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