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2022 (8) TMI 31 - AT - Income TaxRevision u/s 263 - Bogus purchases - HELD THAT:- AO has done a thorough examination of the facts and has given an elaborate finding on bogus purchases declared. AO has confronted each of the submissions of the assessee and has listed out his conclusions as can be seen from the order. With regard to the PCIT’s contention that the details of previous assessment was not brought to the notice of the AO, we find that in the assessment order the AO has tabulated the list of names against whose names bogus purchases were recorded from assessment years 2016-17 to 2018-19. Further the AO in assessment order has given a specific finding that the purchases booked in the name Syed Ibrahim has been offered to tax as bogus purchase in assessment year 2018-19. In view of these facts which is clearly coming out of the AO’s order, we see no merit in the conclusion of the PCIT that the AO has not examined the facts and not done proper verification. Issue that Explanation (2) to Section 263 of the Act could be invoked only in a very gross case of inadequacy in enquiring or where the mandatory enquiries are not conducted has reached finality. AO in the given case has conducted enquiry and perused the details submitted and has taken decision to make addition of bogus purchases recorded in the books accounts with proper application of mind. Therefore in our considered view, that the PCIT is not justified in revising the order of the AO. Accordingly, the impugned order of the PCIT is quashed. Appeal of assessee allowed.
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