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2022 (4) TMI 1013 - AT - Income TaxRevision u/s 263 - CIT initiating proceedings on the basis of audit objection - reopening of assessment u/s 147 - though the assessee as per information gathered by the Assessing officer had carried out cash transactions and was in receipt of contract payments, however, he had failed to file his return of income for the year under consideration - HELD THAT:- As facts reveals beyond doubt that the AO had in the course of the assessment proceedings applied his mind as regards the reasons on the basis of which the case of the assessee was reopened by him and, had only after finding the claim/explanation of the assessee in order and to his satisfaction accepted the same. As observed by us, AO had duly verified the aforesaid claim of the assessee that his contract receipts/turnover qua the contractor, viz. M/s. Shafi Ahmed and had only after vetting the said claim on the basis of the latter's confirmations that were placed on his record and the bank statements of the assessee which duly supported his aforesaid claim, had accepted the same. Cash transaction which, inter alia, had formed one of the reason for reopening of the assessee's case, we find that the AO after duly verifying the bank statements of the assessee, had concluded that there were no such transactions carried out by the assessee during the year under consideration. We are unable to persuade ourselves to subscribe to the view taken by the Pr. CIT that the Assessing Officer had summarily accepted the claim of the assessee on the aforesaid issue in question. In our considered view, as the Assessing Officer while framing assessment vide his order passed u/s. 147 r.w.s. 143(3) had carried out necessary verifications, the same, even if are to be held to be "inadequate" would by no means justify the invoking of the revisional jurisdiction by the Pr. CIT u/s. 263 - On the basis of our aforesaid deliberations, we are unable to concur with the view taken by the Pr. CIT that de hors necessary verifications on the part of the AO as regards the reasons on the basis of which the case of the assessee was reopened u/s. 147 of the Act, his order passed u/s. 147 r.w.s. 143(3) of the Act was rendered as erroneous in so far it was prejudicial to the interest of the revenue within the meaning of "Explanation-2" to Section 263 - Appeal of assessee allowed.
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