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2022 (4) TMI 328 - AT - Income TaxRevision u/s 263 by CIT - assessee's claim of exemption u/s. 54 - case was selected for limited scrutiny under CASS guidelines on the issue of "Deduction claimed under the head Capital Gain " - HELD THAT:- AO made the requisite enquiries, therefore, it is not a case of no enquiry and if the Ld. Pr. CIT was not satisfied with the enquiries made by the AO, he should have conducted the enquiries himself to record the findings that the assessment order was erroneous and he should not have simply set aside the order passed by the AO directing him to conduct the further enquiries. In the present case, as we have been observed earlier, the Assessing officer had made due inquiries about the capital gain earned on sale of agricultural land as well as the assessee's claim of exemption u/s. 54 of the Act and the assessee too had duly responded by the query raised by the Assessing officer and had submitted details and evidences in support of his claim before the Assessing officer. This was also brought to the notice of the Ld. PCIT in response to the show cause notice issued u/s. 263 of the Act but the same did not find favour with the Ld. PCIT. Thus there was due application of mind on the part of the Assessing officer and that adequate and proper enquiry had been conducted by the Assessing officer in this regard and, therefore, the impugned order passed u/s. 263 of the Act cannot be upheld. Accordingly, we hold that the proceedings u/s. 263 of the Act were bad in law and we quash the revisionary proceedings for the reason that the Assessing officer had already made adequate inquiries on the issue raised by the Ld. PCIT and further the Ld. PCIT himself had not raised any independent inquiry on his own before coming to an incorrect concussion that the assessment order was erroneous and prejudicial to the interest of Revenue. Appeal of the assessee stands allowed.
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