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2022 (11) TMI 486 - CALCUTTA HIGH COURTRevision u/s 263 - Whether Tribunal was justified in law by setting aside the order passed under Section 263 of the said Act on the ground that the AO had already conducted an inquiry on the issues in question in connection to the proceedings initiated under Section 263? - HELD THAT:- As seen that it is not a case of no enquiry conducted by the AO but the Assessing Officer had given a questionnaire to the assessee and after inviting a reply on the various queries raised, the assessment has been completed. The settled legal position on the exercise of power under Section 263 of the Act is that the supervisory jurisdiction to circumstances must exist to enable the Commissioner to exercise power of revision namely, the assessment order should be erroneous and it should be prejudicial to the interest of the revenue. If the AO has taken a decision in accordance with law, the said order cannot be termed to be erroneous by the revisional authority merely because the order should have been written in a different format or the order should be an elaborate order. The consideration of revisional authority u/s 263 must be based on materials on record of the proceedings called for by him. If there is no material on record on which it can be said that the revisional authority acting in a reasonable manner could have come to such a conclusion, the very initiation of the proceedings by the revisional authority will be illegal and without jurisdiction. On a reading of the order passed by the revisional authority u/s 263 it is evidently clear that there is no specific finding rendered by the authority as to how the order passed by the AO was erroneous and all that the revisional authority states is that no enquiry was conducted, which is factually incorrect.
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