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2018 (7) TMI 1323 - HC - Income TaxCIT's power of revision u/s 263 - fulfillment of two conditions on the material available on record to exercise power under Section 263 - Held that:- It is clear that suo motu power under Section 263 of the Act can be exercised by the Commissioner if two conditions; firstly the assessment order passed is erroneous; and secondly the order is prejudicial to the interest of Revenue are satisfied. Commissioner, while exercising power under Section 263 in the present case was of the opinion that the assessee did not properly explain the transactions of ₹ 1,70,00,000/- for which the partners gave cheques, but the cheques were not encashed and cheques were given by the family members to partners for amount of ₹ 1,09,00,000/-. A.O. after looking into the accounts of the assessee was satisfied by the explanation offered and we do not find any illegality in accounting entries made in the books of account of the assessee in respect of these transactions. Therefore, we affirm the order passed by the Tribunal. - Decided against revenue
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