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2022 (8) TMI 1222 - AT - Income TaxRevision u/s 263 - validity of reassessment proceedings - ‘Lack of enquiry’ v/s ‘Inadequate enquiry’ - exact nature of agricultural income and justification for claiming it as exempt being income derived from agricultural operations - As per CIT reassessment order passed by AO is without conducting suitable, independent inquiries and non-application of mind by the AO, thus it is an erroneous order and prejudicial to the interest of Revenue - HELD THAT:- Evidences and other materials on record, the Assessing Officer satisfied that cultivation of Teak trees and Sevan trees by the assessee’s firm. Thus, the assessing officer accepted the income derived on the sale of Teak trees and Sevan trees rom the agricultural land. However, the claim of expenditure incurred by the assessee was found to be on a very lower side and therefore adopted at 5% on the sale of agricultural income as allowable expenditure by the assessee. Thus we are of the considered view that the AO while framing assessment order as well as reassessment order made proper enquiries with evidences - AO has accepted the explanations and completed the reassessment order u/s. 143(3) rws 147 of the Act. It is not the case of the assessee that the A.O. has not conducted necessary inquiry, verification before passing the reassessment order. The same cannot be construed either as ‘Lack of enquiry’ or as ‘Inadequate enquiry’. Thus the ld. PCIT cannot revise the reassessment order merely because he held a different opinion than that is verified by the Assessing Officer during the reassessment proceedings. In the present case, the Assessing Officer has issued a detailed notice u/s. 142(1) calling for various details from the assessee and the assessee also had made detailed replies to the above notice with proper evidences and necessary records which are discussed in para 12 of this order. Thus the Assessing Officer having carried out such detailed enquiries satisfied with the explanation offered by the assessee, it is not open for the Ld. PCIT to thereafter Revise the assessment on mere apprehensions and surmises. We are of the considered view that the Assessing Officer had made detailed enquiries and after applying his mind and satisfied genuineness of the claim of agricultural income, which is plausible view adopted by the Assessing Officer. Therefore the Revisional proceedings initiated u/s. 263 is liable to be quashed. Thus, we find no error in the reassessment order passed by the Assessing Officer so as to justify initiation of revision proceedings u/s. 263 - Decided in favour of assessee.
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