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2021 (11) TMI 630 - AT - Income TaxRevision u/s. 263 by CIT - assessment order passed u/s. 143(3) r.w.s. 153C - proof of "no enquiry" or "lack of inquiry" - HELD THAT:- We find the there is no dispute that the AO while passing the assessment order accepted the claims of the assessee in non-speaking order. It is not the case of ld. PCIT that the AO is not allowed to accepted the return of income in non-speaking order. AO while passing the assessment order recorded that "the Authorized representative of the assessee vide various order sheet entries have furnished the relevant details and information called for. After affording ample and adequate opportunities of being heard to the assessee, assessment proceedings have been completed on the basis of the submissions and details collected and in consequence upon the conclusion of proceeding and hearing of evidences, assessment is made by this order". A perusal of show cause notice under section 263 dated 10.03.2021, clearly demonstrate that the ld. PCIT identified all the issues which were the subject matter of the notice under section 142(1) and the questionnaire attached thereto, were issued by the assessing officer. The ld. PCIT in his show cause notice (SCN) under section 263 has accepted that the AO made detailed questionnaire dated 03.12.2018. And on perusal record and details/evidences available on record, the PCIT noted that AO has not made further inquiry. PCIT has not made a case that there was "no enquiry" or "lack of inquiry" rather recorded that the AO called detailed inquiry. PCIT has not specified that what kind of further inquiry was required, when the income disclosed in IDS was duly accepted by higher authority. We find that declaration made in IDS-16, was never questioned by Board or other superior authority of the revenue. In our view it is the discretion of the AO, having regards to the facts of the case and the material placed before him in response to the various show cause notices, to take a conscious decision if any further inquiry is required or not. Furthermore, we find that the assessment order was duly approved by the ld. JCIT. There in not finding of ld. PCIT that the approval granted by the JCIT is not proper or non-application of proper procedure and practice of the revenue. In the case in hand the AO has made required inquiry and came to a possible conclusion in allowing the claims to the assessee. We also find that on the issues of validity of discloser in IDS, the ld. PCIT has not specified that while making declaration, the assessee made any misrepresentation of any facts. Once the IDS in all cases were accepted by ld. PCIT, the AO or the Range head no authority to relook or power to revoke or to examine its validity. PCIT while directing the AO has not himself revoked the IDS nor directed to refund the payment of tax to the assessee - IDS the assessee has paid more tax to the revenue then the rate of normal tax, so there is no loss of revenue. AO while passing the assessment order has made inquiry and took reasonable, plausible and legally sustainable view. The Hon'ble Delhi High Court in CIT Vs. Kelvinator of India Ltd. . [2002 (4) TMI 37 - DELHI HIGH COURT] held that if the AO has adopted one of the course permissible in law, which resulted in loss of revenue or where two view is possible and the AO has taken one view with which the CIT does not agree, it cannot be treated as erroneous order prejudicial to the interest of revenue unless view taken by the AO is not sustainable in law. At the cost of repetition, we may note that the ld. PCIT neither in his show cause notice nor in ultimate/final order has held that the order passed by the AO is unsustainable in law. - Decided in favour of assessee.
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