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2022 (4) TMI 95 - AT - Income TaxRevision u/s 263 by CIT - Assessment u/s 153C - applicability of provision of Section 2(22)(e) - HELD THAT:- CIT has nowhere in his order pointed out any error in the order passed by the learned AO. It is a fact which staring on us that M/s. Artech Realtors Pvt. Ltd. had carried out the construction activity of the residential premises belonging the Directors in the normal course of its business. Hence the very premise about the applicability of provision of Section 2(22)(e) of the Act itself is clearly in violation of law and such transaction falls within the exception clause. Hence it can be safely concluded that the learned Pr. CIT had proceeded on incorrect application of law while invoking his revisionary jurisdiction under Section 263. Assessee had duly furnished all these details before the learned AO during the course of assessment proceedings in response to the queries raised by the learned AO. Hence it can be safely concluded that the learned AO had indeed made necessary verification on the same and was convinced with the reply given by the assessees. Hence no error could be attributed in the order passed by the learned AO. It also cannot be said that the learned AO had not made any enquiry on this issue. The law is very well settled that the learned Pr. CIT could invoke jurisdiction under Section 263 of the Act only when there is lack of enquiry by the learned AO. Reliance in this regard has been rightly pled by the learned A.R. on the decision in the case of CIT vs. Sunbeam Auto Ltd. [2009 (9) TMI 633 - DELHI HIGH COURT] Pr. CIT had merely directed the learned AO to examine the issue flagged by him in the order without pointing out where the order of the learned AO is erroneous. This only tantamount to directing the AO of fishing and roving enquires which is not permissible under Section 263 - Decided in favour of assessee.
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