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2016 (10) TMI 711 - ITAT VISAKHAPATNAMReopening of assessment - exemption claimed by the assessee u/s 11 denied - corpus donations and advance given to Gopisetty Mallaiah & Co. - revision u/s 263 - Held that:- In the present case on hand, on perusal of the facts available on record, we find that the A.O. has conducted detailed enquiry and also examined the issues pointed out by the CIT in his show cause notice. The assessee explained each and every issue pointed out by the CIT with necessary evidences. The CIT cannot assume jurisdiction to revise the assessment order, once assessee explained that it had filed all the details before the A.O. on the issues on which CIT wants further verification. It is the general presumption of law that once the A.O. has considered all the details before completion of assessment and the CIT cannot presume that the enquiries conducted by the A.O. is insufficient and also the A.O. has not applied his mind, unless the CIT proves that the assessment order passed by the A.O. is erroneous. The assessment order passed by the A.O. u/s 143(3) r.w.s. 147 of the Act, is not erroneous in so far as it is prejudicial to the interest of the revenue in so far as three issues pointed out by the CIT in his order with regard to corpus donations, applicability of maximum marginal rate and advance given to Gopisetty Mallaiah & Co. In so far as determination of income from house property, the CIT has rightly revised the assessment order, as the A.O. has failed to examine the issue to bring the correct amount of income to the tax. Therefore, we modified the CIT’s order u/s 263 of the Act and upheld the findings of the CIT, with regard to income from house property and set aside order of the CIT in respect of corpus donations, applicability of maximum marginal rate and advance given to Gopisetty Mallaiah & Co.
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