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2023 (2) TMI 125 - AT - Income TaxRevision u/s 263 - PCIT setting aside the assessment order dated 31.12.2019 framed u/s 143(3) - assessee computed capital gains being long term capital gains on sale of land to DMRC Ltd and in computation of income, the assessee also claimed exemption u/s 54 - HELD THAT:- A perusal of the notice of the PCIT clearly shows that the PCIT wants to examine the same details and same documents which were examined by the AO during the course of scrutiny assessment proceedings. It is a settled position of law that powers u/s 263 of the Act can be exercised by the Commissioner on satisfaction of twin conditions, i.e., the assessment order should be erroneous and prejudicial to the interest of the Revenue. By 'erroneous' is meant contrary to law. Thus, this power cannot be exercised unless the Commissioner is able to establish that the order of the AO is erroneous and prejudicial to the interest of the Revenue. Thus, where there are two possible views and the AO has taken one of the possible views, no action to exercise powers of revision can arise, nor can revisional power be exercised for directing a fuller enquiry to find out if the view taken is erroneous. This 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. We set aside the order of the PCIT and restore that of the Assessing Officer framed under section 143(3) - Appeal of assessee allowed.
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