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2022 (12) TMI 163 - AT - Income TaxRevision u/s 263 by CIT - unaccounted income taxed u/s 69 - assessee during the survey proceeding has admitted the unaccounted income - As per CIT, AO had not verified this issue while finalizing the assessment proceeding and hence, the AO had not levied the tax as per the provision of section 115BBE - HELD THAT:- As it is not the case that the AO has not made any enquiry. Indeed the Pr. CIT initiated proceedings under section 263 on the ground that the AO has not made enquiries or verification which should have been made in respect of applicability of section 115BBE of the Act. It is not the case of the Pr. CIT that the Ld. AO did not apply his mind to the issue on hand or he had omitted to make enquiries altogether. In the instant set of facts, the AO had made enquiries and after consideration of material placed on record accepted the genuineness of the claim of the assessee. PCIT in his order passed under section 263 of the Act has made reference to the explanation 2 of section 263 of the Act. It was attempted by the learned PCIT to hold that there were certain necessary enquiries which should have been made by the AO during the assessment proceedings but not conducted by him. Therefore, on this reasoning the order of the AO is also erroneous insofar prejudicial to the interest of revenue PCIT has not invoked the explanation 2 of section 263 of the Act in the show cause notice about the same. Therefore, the opportunity with respect to the explanation 2 of section 263 of the Act was not afforded to the assessee. Thus, on this count the learned PCIT erred in taking the course of such provisions while deciding the issue against the assessee. Secondly, the learned PCIT has also not specified the nature and the manner in which the enquiries which should have been conducted by the AO in the assessment proceedings. Thus, in the absence of any specific finding of the learned PCIT with respect to the enquiries which should have been made, we are not convinced by his order passed under section 263 Thus we hold that there is no error in the assessment framed by the AO under section 143(3) of the Act, causing prejudice to the interest of revenue. Thus, the revisional order passed by the learned PCIT is not sustainable - Decided in favour of assessee.
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