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2023 (3) TMI 147 - ITAT DELHIRevision u/s 263 by CIT - Addition u/s.56(2)(viia) - FMV of the share - As per CIT AO during the course of assessment proceedings has not examined the issue of applicability of provisions of Section 56(2)(viia) of the Act on account of investment in unlisted equity shares during the year - benchmark to be adopted whilst dealing with the issue as to whether or not an AO has carried out enquiry or verification - HELD THAT:- PCIT has failed to appreciate that a due inquiry and application of mind was in fact exercised by the AO to arrive at its conclusion that no income had escaped assessment. It is crucial to note that the PCIT in its impugned order, contrary to the above stated facts, made the observation that even when the assessee had submitted details of FMV of the shares in question, showing that there was no income arising there from. The AO had examined and accepted the same, there was no error in the Assessment Order to that extant. We find that the ld. PCIT has failed to consider that Section 263 of the Act vests revisionary power in a superior officer and, therefore by the very inherent nature of such power, it does not allow for substitution of the view taken by the AO. The appreciation of the material placed on record before the AO is exclusively within the four corners of its domain and it cannot overlap with exercising revisionary powers u/s 263 on the ground that the AO should have arrived at a different conclusion basis the material on record. Case of the Assessee is squarely covered by the coordinate bench decision in the case of Pawansut Media Services vs. PCIT [2021 (11) TMI 924 - ITAT DELHI] wherein on near identical facts, the Tribunal quashed the revisionary order u/s 263. Thus in the present case after examining the Explanation 2 to Section 263, submission of the ld. DR, ratio given by the ld. PCIT to treat the Assessment Order as erroneous so far it is prejudicial to the interest of the Revenue in the present case is concerned, we are of the view that the revisionary powers so conferred cannot be exercised to invalidate the action of AO and the Ld. PCIT was not justified in invoking the provisions of Section 263 of the Act to set aside the assessment order passed by AO u/s 143(3) of the Act. Ergo, the order of ld. PCIT passed u/s 263 is hereby quashed. Assessee appeal allowed.
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