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2019 (12) TMI 771 - AT - Income TaxRevision u/s 263 - G.P. shown at 4.68% on sales made in individual capacity should have been considered for G.P. in the case of the partnership firm (assessee under consideration) - HELD THAT:- It is a settled position in law that provisions of section 263 do not permit substituting one opinion by another opinion. The order of the PCIT cannot be sustained on the principle of 'erroneous' nature of the order of the A.O. as it is not erroneous. Further, in the instant case, to reiterate, there was no allegation by the AO that the evidences produced were fictitious or invented, thus accepted the authenticity of the same. Such an order cannot be called erroneous and prejudicial to the interests of revenue. Hence, we are of the view that revisionary jurisdiction exercised by the PCIT u/s. 263 was not in tune with the facts and evidences on record duly explained to the A.O. and verified by him in detail, that being so the order passed u/s. 263 on such erroneous stand is liable to be quashed. We accordingly quash the order u/s 263 of the Act and allow the appeal of the assessee. Second point in the impugned notice u/s.263 was to the direction that addition of peak credit on the basis of the bank account has not been considered in the impugned reassessment order. As stated above, the said peak credit was assumed on the basis of deposits in April,2007 in Axis Bank maintained by the assessee-firm. It is pertinent to note that the said peak credit was originally added in the individual assessment of Sri Jabibur Rahaman for the impugned assessment year solely on the ground that the Bank account with Axis Bank had not been disclosed in his ROI. The Hon’ble Tribunal on the basis of the finding that the same was not related to the individual but belonged to the partnership firm, in which the said individual is a partner, deleted the addition and the same was directed to be considered in the case of the assessment of the partnership firm. Evident that the addition of peak credit in the guise of undisclosed income was made for not disclosing the Axis Bank Account in the ROI, but when the said Bank Account admittedly stood declared in the ROI of the partnership firm for the impugned assessment year and accounted for in the audited books of account, the addition on the basis of earlier stand of undisclosed income does not survive on facts and in law. Since, in para No.12 of our order, we have quashed the order of PCIT, and the second point in the impugned notice u/s.263 is consequential in nature, therefore does not require adjudication. - Appeal of the assessee is allowed.
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