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2022 (4) TMI 329 - AT - Income TaxRevision u/s 263 by CIT - unsecured loans obtained - HELD THAT:- AO made the requisite enquiries, therefore, it is not a case of no enquiry and if the CIT was not satisfied with the enquiries made by the AO, he should have conducted the enquiries himself to record the findings that the assessment order was erroneous and he should not have simply set aside the order passed by the AO directing him to conduct the further enquiries. AO had made enquiry regarding unsecured loans and had also enquired into the issue of melting loss and the assessee too had responded to the query and had submitted details and evidences in support of its contention before the AO. The same was duly brought to the notice of the Ld. PCIT also in response to the show cause notice issued u/s.263 - PCIT did not consider the submissions of the assessee to be of any good. There was a due application of mind on the part of the AO and that adequate and proper enquiries had been conducted by the AO in this regard and, therefore, the impugned order passed u/s. 263 has no feet to stand on. Accordingly, we hold that the proceedings u/s. 263 were bad in law and we quash the revisionary proceedings for the reason that he AO had already made adequate enquiries on the issues raised by the PCIT and further the PCIT had not conducted any independent enquiry on his own before coming to an incorrect conclusion that the assessment order was erroneous as being prejudicial to the interest of the revenue and was liable to be set aside. Appeal of assessee allowed.
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