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2013 (8) TMI 738 - AT - Income TaxRevision - Jurisdiction of CIT u/s 263 - According to CIT, A.O. was duty bound u/s.68 of the Act to do the enquiry of the information received from the FTD before passing its orders, and that in fact was also in substance the directions by the FTD vide its order dated 04.02.2011, and which he did not clearly do, passing the order the very next day. His order was, therefore, erroneous and prejudicial to the interest of the Revenue. - Held that:- A.O. was himself of the considered view that further enquiry is required, having sought materials for the same, though was unable to, in the exigencies of the case, verify and examine the same. In fact, the hon'ble court itself clarifies therein that the CIT could establish that the facts on record or the inference drawn from the facts on record per se justify and mandate further enquiry or investigation by the A.O., which had not been conducted by him - Mandate of s. 68 of the Act remaining unsatisfied. As per the decision in CIT vs. Sunbeam Auto Ltd. [2009 (9) TMI 633 - Delhi High Court] wherein it has been clarified that the argument of lack of enquiry or inadequate enquiry cannot be employed where the A.O. has taken one of the possible views, showing his application of mind on the issue - The argument as regards inadequate enquiry predicates on non-application of mind, so that where, therefore, proper application of mind is reflected, the argument of lack of enquiry would not hold. The enquiry, or its absence, even as explained earlier, is purely a matter of fact, so that the decision turns once again on facts - There has been a valid assumption of jurisdiction u/s.263 in the instant case Appeal allowed Decided in favor of Assessee.
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