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2022 (11) TMI 122 - AT - Income TaxRevision u/s 263 by CIT - unexplained investment u/s. 69 - addition made by the AO towards difference in stock is an unexplained investment for which the assessee failed to provide satisfactory explanation and therefore the undisclosed stock should have been considered as an unexplained investment u/s. 69 which is required to be tax at special rate u/s. 115BBE - HELD THAT:- AO has conducted a detailed enquiry with regard to the deviations in stock and has made the addition under the head business income. Further, in the statement recorded during the course of search the Shri Anand Kumar, one of the partners in the assessee firm, he has admitted that there is difference in the stock recorded in the books and the physical stock and agreed to offer the same as additional income. Additional income is offered towards the difference in stock by the assessee. The PCIT has not brought anything contrary to record to state that the amount admitted towards excess stock is from a difference source. When the additional income is offered towards excess stock, the stock being part of the business of the assessee is offered to tax as business income. PCIT has merely substituted his views to the extent that the AO should have done further enquiry when PCIT himself admits that the additional income is from the excess stock. We are of the considered opinion that the revisionary jurisdiction could not be allowed to be exercised by the PCIT either for substituting his own opinion for that of the AO or for making a fishing and roving enquiry. We are of the opinion that the PCIT in the present case has wrongly invoked the jurisdiction under section 263 and the controversy in the present case is fully covered by the judgment of the Hon'ble Bombay High Court in the case of Gabriel India Ltd. [1993 (4) TMI 55 - BOMBAY HIGH COURT] Accordingly the impugned order of the PCIT is quashed. Appeal is allowed in favour of the assessee .
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