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2021 (2) TMI 32 - AT - Income TaxRevision u/s 263 - differences between the balance sheet filed by the assessee after auditors’ reports vis-à-vis the balance sheet prepared by the special auditor - HELD THAT:- During the course of hearing, we have put to the ld.counsel for the assessee that any of the authority had an occasion to conclusively deal with the incompleteness of its accounts even in 2012-13 and 2013-14, because in those years, the assessee has already settled the issue under Kar Vivad Samadhan Scheme. In the present year, impact percolating to this year has not been assessed by the AO. This act of non-adjudication of the issue at the end of the AO brand his order as erroneous which has caused prejudice to the Revenue. AO has expressed his desire to get the accounts audited by the special auditor in this year also. But, all of a sudden he dropped his idea without assigning any reason. This aspect has also been looked into by the ld.Commissioner while assessing the fact, whether the assessment order is erroneous or not. When a conclusion had been reached on an appreciation of number of facts established by evidence, whether that was sound or not must be determined not by considering the weight to be attached to each single fact in isolation but by assessing the cumulative effect of all the facts in their setting as a whole. We have to appreciate the impugned order of the ld.Commissioner by looking into the facts and circumstances and not in a mechanical way that these very details were considered by the AO, therefore, the ld.CIT is precluded to look into this aspect while exercising power under section 263 of the Income Tax Act, 1961. As observed earlier, the ld.AO has not conducted an inquiry which was required after taking into consideration the discrepancies in the accounts, and therefore the ld.Commissioner has rightly taken cognizance under section 263 and set aside the assessment for conducting fresh inquiry and for passing of fresh assessment order. We do not find any merit in this appeal. Appeal of the assessee is dismissed.
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