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2022 (7) TMI 670 - AT - Income TaxRevision u/s 263 - Irregular allowance of capital loss as Business loss - HELD THAT:- In the present case as the Ld PCIT has not considered the request of the assessee under the time limitation. Further the PCIT has not arrived at any conclusion on the issues raised under proceedings initiated u/s 263 only the issues were set aside to the files of AO with directions to verify and pass a fresh assessment order as per law. Our considered view on this issue is that, if Pr. CIT/CIT is of the view that any enquiry is necessary in the matter, then he should either himself make such enquiry or may get such enquiry conducted. For the purpose of exercising jurisdiction u/s 263 of the Act, the conclusion that the order of the AO is erroneous and prejudicial to the interest of the revenue has to be preceded by some minimal enquiry by Pr. CIT/CIT. If the Pr. CIT/CIT is of the view that the AO did not undertake any enquiry, it becomes incumbent on the Pr. CIT/CIT to conduct such enquiry. If the Pr. CIT/CIT does not conduct such basic exercise then the Pr. CIT/CIT is not justified in setting aside the order u/s. 263 of the Act. Ld PCITs stand to set aside the case back to the files of AO on count of the limitation of time is not acceptable. PCIT’s action to initiating proceedings u/s 263 are not according to law and was not able to establish that the order of AO was erroneous and prejudicial to the interest of revenue, therefore order passed u/s 263 for the AY 2011-12 is not sustainable, hence quashed. Assessee stated regarding order u/s 263 by the Ld PCIT for AY 2010-11 is a copy paste of the order for the AY 2011-12 of the same assessee - We have perused the material available and observed that the order u/s 263 of the was passed for AY 2010-11 by the Ld PCIT is entirely akin to the order passed for AY 2011-12 and hence cannot be considered as a valid order, therefore not sustainable, accordingly quashed. Appeal of assessee allowed.
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