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2021 (2) TMI 316 - AT - Income TaxRevision u/s 263 - accrual of income - Decree recognized interest on the decretal amount - Addition of accrued interest on decree amount for the reason that the assessee was following mercantile system of accounting - HELD THAT:- Assessing Officer has made specific inquiry on the issue of recovery of decretal amount vide letter dated 03-02-2014 and the assessee has submitted the detail of not showing such interest income vide letter dated 12.02.2014 during the course of assessment proceedings. Such details are reproduced and discussed supra in this order. It is demonstrated from above discussion that in the case of the assessee, the Assessing Officer has made specific inquiry and there was material on record before framing assessment order. CIT was not justified in holding that the Assessing Officer has not made specific enquiries with regard to interest income. In the light of the facts and findings as elaborated supra in this order we consider that order passed under section 263 of the Act is not sustainable in law, therefore, order passed u/s. 263 is quashed. Accordingly, the appeal of the assessee is allowed - Decided in favour of assessee.
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