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2023 (11) TMI 790 - AT - Income TaxRevision u/s 263 - Characterization of income - CIT asking the AO to treat the agricultural income as unexplained income of the assessee - HELD THAT:- In view of the exercise undertaken by the AO we are compelled to hold that the AO has made sufficient and adequate enquiry on the sole issue under the purview of limited scrutiny and thereafter, accepted the claim of assessee regarding exemption of agricultural income. Thus, we are not in agreement with the conclusion drawn by the Ld. PCIT that the AO has allowed claim of assessee without making any inquiry or verification. On the other hand, as we have noted above the AO has taken a plausible and sustainable view after detailed examination and verification of claim of assessee earning exempt agricultural income therefore, the assessment order cannot be alleged as erroneous and prejudicial to the interest of revenue. Our conclusion gets supports from the judgment of Malabar Industries ltd Vs. CIT [2000 (2) TMI 882 - SUPREME COURT] The ld counsel has relied on the order of Rakesh Kumar Vs. CIT [2018 (12) TMI 1718 - ITAT DELHI] wherein, it was held that when the AO has raised specific question on the issue of verified required details then it cannot be said that the assessment order is erroneous and prejudicial to the interest of the revenue. In our considered opinion, in such a condition the conclusion drawn by the ld PCIT to set aside the assessment order is not correct and sustainable. Decided in favour of assessee.
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