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2012 (2) TMI 18 - DELHI HIGH COURTRevisionary powers of Commissioner u/s 263 - AO accepted the return of loss filed by assessee in pursuance of notice issued u/s 148 and accepted that assessee had proved the source to invest Rs.20 lacs in FDR (reason for re-opening) and accordingly no addition was made – A.O. also accepted increase in share application money and established geniuness of share application money by issuing summons u/s 131 to person on random basis and statements were recorded – Tribunal quashed the order of CIT(A) - Held that:- Order of the A.O. cannot be regarded as erroneous even if he had failed to carry out necessary verification and required enquiries in respect of the share application money, as no addition has been made on account of the reasons for reopening i.e. investment in FDR, which were recorded before issue of notice u/s 148. As the AO did not make any addition for the reasons recorded at the time of issue of notice under Section 148 of the Act. This position is not disputed and disturbed by the Commissioner of Income Tax in his order under Section 263 of the Act. Sequitur is that the Assessing Officer could not have made an addition on account of share application money in the assessment proceedings under Section 147/148. Accordingly, the assessment order is not erroneous. Thus, the Commissioner of Income Tax could not have exercised jurisdiction under Section 263 of the Act – Decided against the Revenue.
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