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2019 (12) TMI 696 - AT - Income TaxRevision u/s 263 - HELD THAT:- CIT has not invoked Explanation 2 to S. 263 either in the show cause notice or in the order passed u/s. 263. Even otherwise, Explanation 2 is not applicable as assessing officer has made the inquiry and verification which ought to have been made. Further, it is submitted that the coordinate bench in the case of Narayan Tatu Rane [2016 (5) TMI 1162 - ITAT MUMBAI] held that Explanation cannot said to have overridden the law as interpreted by the various High Courts, where the High Courts have held that before reaching a conclusion that the order of the AO is erroneous and prejudicial to the interest of revenue, the Commissioner himself has to undertake some enquiry to establish that the assessment order is erroneous and prejudicial to the interest of Revenue. And the Explanation 2 to section 263 was inserted from 01.06.2015 and it is not applicable retrospectively as held in the case of Santi Krupa Estate Pvt. Ltd. vs. ACIT [2016 (9) TMI 1341 - ITAT AHMEDABAD]. In the present case as well as the legal proposition laid down by the higher courts we are of the view that in the present case the AO had made enquiry and assessee has also placed on record all the documents as were required by the AO in respect of both the issues as now raised by the Pr.CIT. Thus, the order passed by the AO is neither erroneous nor prejudicial to the interest of the Revenue. Merely just because the view taken by the AO was not found acceptable does not mean that the AO has failed to make requisite enquiries. AO was plausible view, which cannot be disturbed by the Ld. Pr.CIT. Therefore, Pr.CIT was not correct in exercise the jurisdiction u/s 263 - We quash the assessment proceedings initiated by the Pr.CIT in the impugned order passed under section 263 and allow the appeal of the assessee. - Appeal of the assessee is allowed.
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