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2022 (11) TMI 1036 - AT - Income TaxRevision u/s 263 - distinction between “lack of enquiry” and “inadequate enquiry”- as per CIT, AO has not enquired about the transaction entered into by the assessee, which resulted in capital gains and it was claimed as exempt u/s 10(38) of the Act, thereby making the assessment order not only erroneous but also prejudicial to the interest of the Revenue - HELD THAT:- We are of the considered view that the Assessing Officer had made specific enquiries during the assessment proceedings to which specific reply was furnished by the assessee alongwith supporting documentary evidences and all such evidences were duly examined and considered by the Assessing Officer before completing the assessment proceedings u/s 143(3) of the Act. In our considered view, the power of revision can be exercised only where no enquiry, as required under the law, is done. It is not open to enquire in case of inadequate inquiry as held by the Hon'ble High Court of Bombay in the case of CIT vs. Nirav Modi[2016 (6) TMI 1004 - BOMBAY HIGH COURT] We find that in the case of CIT Vs Sunbeam Auto [2009 (9) TMI 633 - DELHI HIGH COURT] has held that the Assessing Officer in the assessment order is not required to give detailed reason in respect of each and every item of deduction, etc. Whether there was application of mind before allowing the expenditure in question has to be seen. If there was any inquiry, even inadequate, that would not by itself give occasion to the CIT to pass orders under section 263 of the Act, merely because he has different opinion in the matter. In the case of Anil Kumar Sharma [2010 (2) TMI 75 - DELHI HIGH COURT] has held that there is a distinction between “lack of enquiry” and “inadequate enquiry” If there was any enquiry, even inadequate, that would not by itself give occasion to the Commissioner to pass orders u/s 263 of the Act. Appeal of assessee allowed.
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