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2019 (12) TMI 263 - AT - Income TaxRevision u/s 263 - scope of SCN issued for revision order - whether the AO has applied the mind after making inquiry - The charge of the ld.Commissioner is that the assessment order is erroneous because the AO failed to examine certain material viz. outcome of the survey; details reflected in NSEL data base; report of “S&TA” and thus, such assessment order has caused prejudice to the interest of the revenue, and therefore, it deserves to be set aside. - CIT in the order u/s 263 directed the AO to reframe the assessment orders after conducting inquiries. Held that:- ld.Commissioner has merely raised suspicion on the basis of certain information which were already in the knowledge of the AO, not only in this assessment year, but in earlier assessment years. The ld.Commissioner has not conclusively recorded any finding as to what is the ultimate impact of this information on the assessability of these appellants, and how non-consideration of this made the assessment order as erroneous. The AO has taken note of all these things, because these very materials were available in the immediately preceding year. The only addition made and confirmed by the ld.CIT(A) in the Asstt.Year 2013-14 has been struck down. Thus, the ld.Commissioner ought to have looked into order of the ITAT, and thereafter, analysed the details, whether any income has escaped on account of failure of the AO to conduct adequate inquiry (in the opinion of CIT). The ld.Commissioner nowhere made out that case. Therefore, as far as first compartment of show cause notice is concerned, we are of the view that the ld.Commission failed to point out any reasons which can suggest that the assessment orders are erroneous. The materials referred by him are superficial, which at the most can rise a suspicion only. No firm conclusion can be drawn nor support the stand taken by the ld.Commissioner. Regarding the second compartment of the show cause notice - Held that:- We have minutely examined each and every reason assigned by the ld.Commissioner under serial no.VI of the reasons given by him in the show cause notice. It is discernible that all these details were submitted before the AO during the course of assessment proceedings. The assessment proceedings continued for almost more than eight to nine months, and the accounts were provided before the AO. The ld.Commissioner just made narrations in the show cause notice, but has not conducted any inquiry, and has not held how assessment order is erroneous by pointing out short-comings of these accounting entries. Had an elaborate discussion available, then that would be an ideal situation for the higher appellate authorities to appreciate, what has operated in the mind of the AO while passing the assessment. But in the absence of such discussion, it has to be ascertained from the questionnaire and the replies submitted by the assessee. Explanation-2 can be invoked when no inquiry was conducted by the AO Revision order quashed.
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