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2022 (10) TMI 819 - AT - Income TaxRevision u/s 263 by CIT - lack of inquiry on the part of the AO - As per CIT, AO had completed the assessment without carrying out necessary and proper inquiries which he ought to have carried out and, therefore, the orders passed u/s 143(3) of the Act r.w.s. 147 were erroneous and prejudicial to the interest of the Revenue - Assessee received large amount of cash from the relatives on different dates but no cross-verification had been made by the AO in the case of the relatives to verify such cash receipts - HELD THAT:- Assessees had submitted the documents with a view to justify their claims of having sufficient cash for the purpose of making the advance. That the assessees had share in Joint Family Land as well as had agricultural lands in their own names is also not under dispute. The assessees have also filed cash flow statements to justify the availability of cash and we have gone through them and we find no reason to take a view different from the view taken by the AO in this regard. AO had an opportunity to consider these very voluminous documents that which were before him to consider and it was only after having examined these documents, he reached a conclusion that the returned income of both the assessee’s was to be accepted. Of course, the AO might not have given an elaborate description of the inquires he had conducted during the course of assessment proceedings, all the same, we do not agree with the view taken by the Ld. PCIT that the AO had not carried out any inquiries. The documents on record very well prove that the AO had duly required the assessees to file the relevant details and the assessees also had filed the same and it was only after due consideration and examination of these documents before him that the AO had reached the conclusion that the assessments had to be completed without making any addition. Thus, in our considered view, the AO had exercised due dil igence and had duly applied his mind to the facts of the cases before him and, therefore, the observation of the Ld. PCIT that since there was lack of inquiry on the part of the AO, the same had rendered the assessment proceedings as being erroneous and prejudicial to the interest of Revenue does not hold good. AO took one of the possible views that the assesses had sufficient funds to make the impugned advance and the action of the AO cannot be faulted with by the Ld. PCIT only because he might have had a different view. PCIT has not carried out any enquiry himself, therefore PCIT had wrongly invoked the revisionary powers u/s 263 of the Act in the case of both the assessees and further the cancellation of the assessment orders in both the cases was also bad in law - Appeal of assessee allowed.
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