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2021 (3) TMI 562 - AT - Income TaxRevision u/s 263 - Payments made to parties in violation of provisions of section 40A(3) - HELD THAT:- On perusal of assessment order u/s.143(3) of the Act, we observe that the Assessing Officer has not discussed the issue in the assessment order or made any enquiry and simply accepted the returned income by the assessee and there is no deliberation. 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. Hon’ble Apex Court in the case of Smt. Tara Devi Aggarwal vs. CIT, [1972 (11) TMI 2 - SUPREME COURT], has held that the CIT may consider an order of the AO to be erroneous not only it contains some apparent error of reasoning or of law or of fact on the face of it but also because it is a stereo typed order which simply accepts what the assessee has stated in his return and fails to make enquiries which are called for in the circumstances of the case. The Assessing Officer cannot remain passive in the face of a return which is apparently in order but calls for further inquiry. By accepting the returned income without making any enquiry and deliberation on the points raised by the Lr. Pr. CIT, the assessment order is erroneous and prejudicial to the interest of the revenue. Hence, the Pr. CIT is justified in setting the assessment order and directing the AO to make fresh assessment after providing opportunity to the assessee. - Decided against assessee.
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