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2023 (4) TMI 629 - AT - Income TaxRevision u/s 263 - AO has not discussed in the final assessment order about the additions proposed in the draft assessment order - Dispute of PCIT is that had the FAO accepted the submissions of the assessee made in response to the draft assessment order, the generally accepted principles while framing the assessment order, is to discuss the issue chronologically and then pass the judgement whether or not the assessee’s submission is acceptable and if it is acceptable whether it is in accordance with law - HELD THAT:- We defer from the above observation of the ld. PCIT. When the reply of the assessee is not in accordance with law, then only it will be reflected in the assessment order describing; what was the proposal, what was the reply and as to how the reply of the assessee was found not in accordance with law. Naturally, when the AO considered the reply of the assessee was in accordance with law, he has described in the final assessment order and just because the AO has not elaborately discussed the addition proposed in the draft assessment order, reply of the assessee, whether the reply is in accordance with law, etc. the final assessment order cannot be held that as erroneous and prejudicial to the interest of the Revenue. Under the above facts and circumstances of the case, we are of the opinion that the order passed by the Assessing Officer is neither erroneous nor prejudicial to the interest of Revenue. Thus, the revision order passed by the ld. PCIT under section 263 of the Act is quashed.Appeal filed by the assessee is allowed.
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