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2017 (8) TMI 174 - AT - Income TaxRevision u/s 263 - addition u/s 40A(3) - Held that:- It is an admitted fact that notice u/s 263 of the Act does not contain any such violation. However, in the order passed u/s 263 of the Act, the ld. CIT has considered this possible violation on the part of the assessee as one of the ground for cancelling the assessment by invoking power u/s 263 of the Act. It is held in various decisions that an order u/s 263 of the Act passed on the ground not taken in notice as invalid. Since the assessee in the instant case has filed adequate details regarding sundry creditors and the A.O after examining such details has accepted such sundry creditors as genuine, therefore, merely because the A.O has not conducted enquiry in a particular way as per the desire of the ld. CIT cannot be a ground to invoke jurisdiction u/s 263 of the Act. This is a case of inadequate enquiry, but it cannot be said that no enquiry has been conducted by the A.O. In this view of the matter, we are of the considered opinion that the ld. CIT was not justified in invoking the provisions of section 263 of the Act. Thus we set aside the order passed u/s 263 of the Act by the ld. CIT and grounds raised by the assessee are allowed.
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