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2023 (11) TMI 287 - HC - Income TaxRevision u/s 263 - addition u/s. 68 r.w.s. 115BBE - Tribunal justification in quashing the order u/s. 263 - HELD THAT:- Assessee had submitted an explanation that the repayment of unsecured loan was made from sell proceeds from one of the debtors and therefore adequate inquiry was done and it was not a case of lake of inquiry. In context of applicability of Section 69C it was held by the Tribunal that the section would apply to unsecured expenditure, source of which remains unexplained. Tribunal held that in the assessee’s case, repayment of loan does not constitute any expenditure and as the source of such repayment was also explained before the AO as well as the Principal Commissioner of Income Tax, Section 69C could not have invoked. It was also further observed that the receipts had already been taxed in the hands of the assessee and the assessee had filed an appeal against the order which was finally closed under the ‘Vivad se Vishwas Scheme’. Accordingly, in our opinion, the Tribunal was right in holding that it was not a case where there was lack of inquiry and therefore there was no ground on which revisionary powers under Section 263 could have been invoked. Decided in favour of assessee.
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