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2022 (10) TMI 1035 - AT - Income TaxRevision u/s 263 by CIT - there is a huge difference in invoice value and the duty paid as per the Annexure-15 and the ITS data available - CIT came to the conclusion that the purchase value/invoice values have wrongly mentioned to reduce the net profit of the Firm and the same has not been verified by the AO at the time of finalizing the assessment under Section 143(3) - HELD THAT:- Now, assessee has submitted a Chart before the Ld. Pr. CIT giving a reconciliation of the difference pointed out by Ld. Pr. CIT and submitted that all difference has been duly explained. However, the issue for consideration is whether this aspect should have been enquired during the course of assessment proceedings. In our view, this glaring difference should have been enquired during the course of assessment proceedings, which the Ld. Assessing Officer omitted to do. In the case of L.A. Developers [2022 (6) TMI 1321 - ITAT CUTTACK] ITAT held that failure on part of Assessing Officer to examine or make addition in respect of difference between cash flow and balance sheet had clearly made assessment order erroneous and consequently prejudicial to interest of revenue. Therefore, Commissioner was right in invoking his powers u/s. 263 of the Act. In view of the above facts and the judicial precedents on the subject, in our considered view, reconciliation should have been sought by Ld. Assessing Officer during the course of assessment proceedings. Non-seeking of such reconciliation, which apparently should have been sought, in our view, indicates non-application of mind to the given set of facts by Ld. Assessing Officer during the course of assessment proceedings. Accordingly, we find no infirmity in the order of Ld. Pr. Ld. CIT(A), who, in our view, in the instant set of facts has correctly concluded that the order passed by Ld. Assessing Officer is erroneous and prejudicial to the interests of the Revenue. Appeal of assessee dismissed.
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