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2022 (11) TMI 670 - AT - Income TaxRevision u/s 263 by CIT - eligibility of deduction of construction expenses claimed u/s 37(1) - AO noticed that assessee-firm had claimed provision for construction expenses under the head direct expenses in the profit and loss account as well as in Income Tax Return - HELD THAT:- PCIT has not set out as to why this item of provision for expenditure need to be investigated and as to what type of inquiry ought to have conducted by the AO. A mere observation that no proper details have been obtained, cannot be sufficient to come to a conclusion that the AO did not make proper and adequate inquiries which he ought to have made in the given facts and circumstances of this case. In the conclusion we are of the view that none of the reasons set out by the ld PCIT for invoking the jurisdiction u/s 263 of the Act are sustainable. The impugned order of the PCIT has to be quashed for the reason that order of the AO sought to be revised in the impugned order was neither erroneous nor prejudicial to the interest of the revenue for the reason of any lack of inquiry that the AO ought to have made in the given facts and circumstances of the case. We accordingly quash the order passed by PCIT u/s 263 of the Act and allow the appeal of the assessee.
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