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2020 (3) TMI 329 - AT - Income TaxRevision u/s 263 - undisclosed receipts and value the opening stock and closing stock of iron ore and dump workings - HELD THAT:- Unanimous view that the Income-tax Officer is not only an adjudicator but also an investigator. It is his duty to ascertain the truth of the facts stated in the return. When the circumstances of the case are such so as to provoke an enquiry, it is his duty to make proper enquiry. Failure to make enquiry in such circumstances would make the assessment order erroneous. Assessee has neither disputed the correctness of the above decision nor brought to our knowledge any contrary decision on this point, but he claimed that the A.O. made proper enquiry. Whether the A.O. has made the requisite enquiries? - It is undisputed that during the accounting year relevant to assessment year under consideration, the assessee has credited ₹ 167,58,34,770/- under the head “revenue from operations (gross)’ i.e. (gross sale of ₹ 196,76,82,602 – less royalty of ₹ 29,18,47,831). Pr. CIT gathered from Form H1 prescribed to Indian Bureau of Mines that the assessee had effected total sale of 940,788.270 (MT) of iron ore for a sum of ₹ 202,42,11,422/- and as such gross revenue from operation has been worked out to ₹ 173,23, 63,591 i.e. (gross sale of ₹ 202,42,11,422 – less royalty of ₹ 29,18,47,831). The above discrepancies were not pointed out by the Assessing Officer at the time of assessment proceedings. Pr. CIT after making proper enquiry pointed out that that the assessee company had understated its revenue from operations to the extent of ₹ 5,65,28,821 (₹ 173,23,63,591 – ₹ 167,58,34,770/-. We, therefore, are in agreement with the learned Pr. Commissioner of Income tax that the assessment order was erroneous in so far as it was prejudicial to the interests of revenue. Accordingly, we decline to interfere with the order of learned Commissioner passed under section 263 of the Act. - Decided against assessee.
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