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2023 (10) TMI 201 - AT - Income TaxValidity of Revision u/s 263 - Inadequate/insufficient or no enquiry - main grievance of DR for the Revenue was that AO has not conducted further enquiry - HELD THAT:- We note that further enquiry may be conducted by the Assessing Officer, if he thinks fit that results of the first enquiry are not sufficient. Therefore, after conducting proper enquiry, if the assessing officer passed order in brief, that does not mean that assessing officer has not conducted enquiry. We note that main grievance of ld DR for the Revenue was that assessing officer has not conducted further enquiry. As we have noted earlier that it is the domain of the assessing officer to decide, based on the facts and circumstances that a further enquiry is needed or not. Pr. C.I.T. by invoking his jurisdiction u/s. 263 of the Act is giving another opportunity to the Ld. A.O., which is not permissible. Hon’ble Bombay High Court in the case of Ranka Jewellers [2010 (3) TMI 544 - BOMBAY HIGH COURT] relying on the decisions of Malabar Industrial Co. Ltd. [2000 (2) TMI 10 - SUPREME COURT] and Max India Ltd. [2007 (11) TMI 12 - SUPREME COURT] has held that once the issue was considered by the A.O., the remedy of the revenue could not lie in invoking of the jurisdiction u/s. 263 of the Act. Therefore, the order of the Ld. C.I.T. was definitely outside the purview of section 263. The exercise aimed at ascertaining the correct income of the assessee has been fulfilled by the Ld. A.O. by exercising his quasi-judicial functions vis-a-vis passing the assessment order u/s. 143(3) - certainly it is not a case wherein adequate enquiries at the assessment stage were not carried out or assessment was made in haste. What is an opinion formed as a result of these enquiries and verification of the materials is something which is in exclusive domain of the Assessing Officer, and even if Ld. Pr. Commissioner does not agree with the results of such enquiries, the resultant order cannot be subjected to revision proceedings. It is a settled position in law that provisions of section 263 of the Act do not permit substituting one opinion by another opinion. Therefore, the order of the Ld. Pr. C.I.T. cannot be sustained on the principle of ‘erroneous’ nature of the order of the A.O., as it is not erroneous. Appeal filed by the assessee is allowed.
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