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2022 (4) TMI 1175 - AT - Income TaxRevision u/s 263 - no proof of identity, creditworthiness or genuineness has been furnished from the loan taken - CIT observed that the AO has accepted the return of income of the assessee without calling for and verifying the bank statements and the payments made to Karvy Comtrade ltd., towards loss incurred was also not verified and the genuineness of loan was also not verified - HELD THAT:- From the copies of notice u/s. 142(1) of the Act, clearly reveals that the AO has made enquiries and called upon bank statement including Fixed Deposits from the assessee and the assessee complied first notice by way of filing reply dated 18.10.2018. We also observe that since the assessee undertook high volume of trading in commodity future of MCX Platform, the source of finance stated in the audited account placed were also placed before the AO, in our considered view, it is not a case of inadequate enquiry. After observing above factual position of the present case. We are also of considered view that in a case of no enquiry, pr. CIT is empowered to direct the AO to make enquiries and pass reassessment orders but in a case where the AO has made enquiry by issuing notice, taking on record compliance of notice and then took a plausible view, and the Pr. CIT is not agreeing with the view taken by the AO, then he has to conduct enquiry himself. He cannot direct the AO to redo the assessment. From the copy of confirmation of account available clearly reveals that the creditor Shri Mundra sent confirmation to the assessee showing opening balance as on 1.4.2015 at ₹ 14,50,000/- and same amount shown as on 31.3.2016, therefore, there was no new transaction during the relevant financial period with these creditors, copy of pass book of Brij Mohan Mundra with PNB Account No. 45852 clearly reveals that the assessee received loan during the financial year 2014-15, which was remained unpaid at the end of that financial year and brought forward to the present financial year 2015-16 and again carry forward to the next financial year. Therefore, copy of this statement clearly reveals that the amount received from this creditor has been credited to the account of the assessee and immediately refunded and, therefore, there was no cash transaction or cash deposit. Thus inquiries were certainly conducted by the Assessing Officer. It is not a case of no inquiry. The order under Section 263 itself records that the Pr. CIT felt that the inquiries were not sufficient and further inquiries or details should have been called. Therefore, we set aside the order of the ld. Pr. CIT and quash the same. - Appeal of assessee allowed.
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