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2022 (12) TMI 747 - AT - Income TaxRevision u/s 263 by CIT - unexplained loan transactions - PCIT’s opinion the AO has carried out inadequate enquiry - AO has only accepted the genuineness of transactions on the basis of details/confirmations received in response to notices u/s 133(6) of the Act without issuing any summons to these loan creditors u/s 131 - HELD THAT:- In our view the exercise of jurisdiction by the Ld. PCIT for the reason that the AO has carried out the inadequate enquiry and the AO has taken a possible view on the of evidences filed by the assessee and also ones obtained from loan creditors u/s 133(6) with which the ld. PCIT is not agreeing with. In our opinion, where the Ld. PCIT feels that the AO has made inadequate enquiries then the PCIT is duty bound to carry out the necessary enquiry/investigation and pinpointing on the basis of such investigation/enquiry as to how the order framed by the AO is erroneous as well as prejudicial to the interest of the revenue but merely cancelling the assessment on the basis of observations that AO has carried out in adequate enquiry is not permissible under the Act. The case of the assessee finds support from the decision of D.G. Housing Projects Ltd.[2012 (3) TMI 227 - DELHI HIGH COURT] In the case of CIT vs. Gabriel India Ltd. [1993 (4) TMI 55 - BOMBAY HIGH COURT] as held that in order to invoke the jurisdiction u/s 263(1) of the Act there must be material before the Commissioner to consider that the order passed by the ITO was erroneous insofar as prejudicial to the interest of the revenue. The Hon’ble court has held that an erroneous order must be an order which is not in accordance with the law or which has been passed by the AO in undue haste without making any enquiry. The Hon’ble Court has further held that the order is said to be prejudicial to the interest of revenue if it is not in accordance with the law in consequence whereof the lawful revenue due to the State has not been realized or cannot be realized. The Hon’ble Court held that such a decision of Income Tax Officer cannot be held to be erroneous simply because he has not made elaborate discussion in that regard in the assessment order. Appeal of the assessee is allowed.
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