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2022 (4) TMI 1078 - AT - Income TaxRevision u/s 263 by CIT - genuineness of the loan accepted / taken - Reliance on audit objection report - violation of principle of natural justice -validity of assumption of revisionary jurisdiction directing the assessing officer for fresh adjudication - HELD THAT:- It is trite law that, while exercising revisional jurisdiction u/s 263 of the Act, it must bear in mind that the principles of natural justice do not permit the decision of a revisionary authority to be influenced by any other authority or agency, which indeed unfortunately the case squarely is, therefore, we are of the view that, this revisionary proceedings initiated on the thin ice of audit objection report and concluded in absence of deprecative material, is untenable in law. It was a change of opinion on the basis of audit objection on the issue duly inquired and addressed by the Ld. AO while framing assessment u/s 143(3) of the Act. In this count we shall necessarily refer the ratio drawn by Hon'ble Guwahati High Court while adjudicating on similar issue in “B & A Plantation & Industries Ltd Vs CIT” [2006 (12) TMI 101 - GAUHATI HIGH COURT] where Hon’ble Lordship have emphasised the ratio decidendi laid in “Sirpur Paper Mill Ltd. [1970 (4) TMI 4 - SUPREME COURT] that while exercising power, the Commissioner must have an unbiased mind and decide the dispute according to the procedure which is consistent with the principles of natural justice and cannot permit his mind to be influenced by the dictation of another authority. On the other hand, in no case, mere audit information form a sole basis material and renders the order of assessment erroneous, and the very absence of tangible material before the revisionary authority itself sufficient to hold the action as unsustainable in law and this view has been invigorated in “Jeewanlal limited" [1975 (12) TMI 34 - CALCUTTA HIGH COURT] Also in “CIT Vs Gabriel India Ltd” [1993 (4) TMI 55 - BOMBAY HIGH COURT] has also taken similar view that, unless the revisionary authority forms a conclusion on the basis of concrete, tangible & evidential material, it cannot reach to the conclusion rendering the order of assessment erroneous and prejudicial to the interests of the Revenue. In the light of aforestated reasoning, we neither find any infirmity with the order of assessment nor any merits in the revisionary order, ergo we quash the revisionary order, thus the legal ground of the appellant is allowed.
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