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2022 (9) TMI 596 - AT - Income TaxRevision u/s 263 by CIT - Failure to produce documentary evidence in respect of agricultural receipts - case was selected for limited scrutiny under CASS guidelines for the reason of 'Large Agricultural Income' - Assessment was completed u/s. 143(3) at the returned income with the observation "Large Agricultural Income Stands Explained" - HELD THAT:- AO has indeed conducted an in depth inquiry in respect of the various issues which the Ld. PCIT has pointed out in the impugned order. It is evident that the assessee has duly responded to the queries raised by the AO and has also substantiated such replies with necessary documentary evidences. Although, the extent of the inquiry having been conducted by the AO may not be apparent from a reading of the assessment order but that would not mean that the AO did not conduct any inquiry on the issue. It would also not mean that the AO has not applied his mind to the issue of large agricultural produce before him. It is settled law that elaborate discussion of the issue in the body of the assessment order would not mean that there has been a lack of inquiry or non-application of mind. Therefore, if the records prove otherwise, non-mentioning of the issues examined by the AO would not make the assessment order erroneous and prejudicial to the interest of the Revenue. In the present case no inquiry has been carried out by the Ld. PCIT and he has simply directed the Assessing officer to carry out detailed inquires. In our considered opinion, the Ld. PCIT, without making further inquiries on his own account, has simply stated in the impugned orders that the Assessing officer was required to make more inquiries. The Ld. PCIT has not pointed out as to what further inquiries was the AO required to make and as to how without those inquires the order of the AO were erroneous in so far as prejudicial to the interest of the Revenue. We are not inclined to agree with the observations of PCIT that the assessment order was passed without conducting any inquiry by the AO and, therefore, the same was erroneous in so far as being prejudicial to the interest of the Revenue - Decided in favour of assessee.
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