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2020 (1) TMI 783 - AT - Income TaxRevision u/s 263 - claim of the assessee on issues relating to VAT Refund and Terminal Excise Duty Refund was accepted by AO without making any inquiry - HELD THAT:- As demonstrated by the assessee at the time of hearing before us on the basis of the letter issued by the AO and the reply filed by the assessee during the course of assessment proceedings, the inquiry on the issue of VAT Refund was specifically made by the AO and after having satisfied himself with the submission made by the assessee explaining the accounting of VAT Refund, which was duly verified by him from the books of account produced by the assessee, the claim of the assessee for VAT Refund was accepted by the Assessing Officer. On this issue, it was thus not a case of lack of inquiry or lack of proper and sufficient inquiry by the Assessing Officer as alleged by the ld. Principal CIT in his impugned order and this position is not disputed even by the ld. D.R. at the time of hearing before us. Issue relating to the assessee’s claim for Terminal Excise Duty Refund was accepted by the AO in the assessment completed under section 143(3) without making any inquiry, which was warranted in the facts and circumstances of the case and this lack of inquiry on the part of the Assessing Officer, in our opinion, made his order passed under section 143(3) erroneous as well as prejudicial to the interest of the Revenue as rightly held by the ld. Principal CIT. The very fact that the assessment was made by the Assessing Officer without proper and sufficient inquiries, as warranted in the facts and circumstances of the case, makes it erroneous and also causes prejudice to the interest of the revenue giving jurisdiction to the ld. Principal CIT under section 263 to revise the same. As already noted, the claim of the assessee for the Terminal Excise Duty Refund in the present case was accepted by the Assessing Officer without making any inquiry whatsoever and such lack of inquiry made his order passed under section 143(3) on this issue erroneous as well as prejudicial to the interest of the Revenue. We accordingly uphold the impugned order passed by the ld. Principal CIT under section 263 setting aside the order of the Assessing Officer only on the issue relating to Terminal Excise Duty Refund and allow partly this appeal of the assessee. - Decided partly in favour of assessee.
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