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2022 (12) TMI 883 - AT - Income TaxRevision u/s 263 - prima facie opinion that the order passed by the AO is erroneous, insofar as it is prejudicial to the interests of the Revenue - As per CIT AO Failed to verify the sources of cash deposits made and bring the unexplained deposit therein to tax AND Failed to examine the low profits/income declared from the liquor business and accepting without proper enquiry - HELD THAT:- There is no dispute that u/s. 263 of the Act, the PCIT does have the power to set aside the assessment order and send the matter for a fresh assessment if he is satisfied that further enquiry is necessary and the assessment order is prejudicial to the interests of the Revenue. However, in doing so, the PCIT must have some material which would enable to form a prima facie opinion that the order passed by the AO is erroneous, insofar as it is prejudicial to the interests of the Revenue. In the present case of the assessee it is clear from the order of the AO which is extracted above, the AO has verified all these details as submitted by the assessee and has applied his mind while concluding the assessment accepting the income returned by the assessee. We see merit in the submission of the ld AR that the license is given to P S Associates vide partnership deed and there was no requirement for a separate license deed to be entered in this regard. The entire premise on which the PCIT has exercised the revisionary power is that the AO should have conducted further enquiries. PCIT has not brought anything on record to shown adverse effect of the lack of enquiry or any material to show that there been an error in the order that is prejudicial to the interest of the revenue. The views of the ld. PCIT as given in the order u/s.263, in our opinion, is not the right reason for exercising revisionary powers u/s. 263 as the error envisaged by Section 263 of the Act is not one that depends on possibility as a guess work, but it should be actually an error either of fact or of law. PCIT is not justified in setting aside the order of the AO and accordingly we hold that the order of the PCIT u/s. 263 is without jurisdiction and liable to be quashed. Appeal of the assessee is allowed.
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