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2021 (9) TMI 424 - HC - Income TaxRevision u/s 263 - Unaccounted and excess stock found during the course of search - whether be assessed as business income at the rate of 30% - show-cause notices calling for explanations from the assessees whether excess stock be not treated as ‘undisclosed investment’ under Section 69 - whether Tribunal is correct in law in endorsing the erroneous order of the A.O as an order after taking one of the possible views? - HELD THAT:- In response to the notices, elaborate explanations were offered by the assessees, which were fortifiable by consistent views by various Benches of the Tribunal as well as the High Courts - Assessing Officer, upon consideration, accepted the explanation and taxed the additional income as ‘business income’ @ 30% instead of 60% as per Section 115BBE of the Act. No contrary view either of any High Court or the Apex Court has been placed before us to demonstrate that the explanations offered by the assessees in the course of assessment were either perverse or contrary to law - we are constrained to hold no case of perversity or lack of enquiry on the part of the Assessing Officer is made out so as to render his decision erroneous under Explanation 2 of Section 263 of the Act. The revisional powers under the said provision were illegally invoked by the Principal Commissioner and his order was rightly set aside by the Tribunal. Appeal dismissed.
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