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2015 (6) TMI 365 - AT - Income TaxValidity of revision u/s 263 - the assessment order passed by the AO u/s 147/148 set aside by ld. CIT holding it to be erroneous and prejudicial to the interest of Revenue - Held that:- The record that the assessee had already filed the return of income despite that she has been wrongly accused of not filing the same; this subjected the assessee to rigor of avoidable 148 proceedings. The record and submissions filed during the course of assessment proceedings did not in any manner indicate that proper enquiries and verification were not conducted. The order of the AO though short yet crisp and clear in arriving at proper findings reflecting reasonable discharge of assessment which cannot be held as erroneous. In our considered view, the case laws cited by the ld. AR in the case of CIT vs. Sun Beam Auto Ltd. (2009 (9) TMI 633 - Delhi High Court), Malabar Industrial Co. Ltd. vs. CIT (2000 (2) TMI 10 - SUPREME Court) and CIT vs. Max India Ltd. (2007 (11) TMI 12 - Supreme Court of India) support assessee's contentions. We are of view that 263 proceedings cannot be invoked where reasonable inquiries are conducted with application of mind; there is conspicuous difference between the cases of lack of enquiry and perception about the level of enquiry. In this case it emerges that ld. CIT carried a different perception about the manner of enquiry which ought to have been conducted by the AO; however it is not 'sufficient to hold the assessment order as erroneous and thereby prejudicial to the interest of revenue. The plethora of case laws cited by the assessee do not support such type of exercise of power u/s 263 of the Act. Hence 263 order holding the AO's order as erroneous cannot be sustained merely because the ld. CIT holds different plausible view about manner of inquiry. Consequently, we are unable to uphold the impugned order u/s 263 of the Act passed by the ld. CIT which is quashed. - Decided in favour of assessee.
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