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2023 (1) TMI 1213 - AT - Income TaxRevision u/s 263 - PCIT has held that the A.O. has not made proper verification as to the cash deposits during the demonetization period for which the assessee is said to have not furnished the documentary evidence in support of its claim - PCIT also stated that the A.O. has failed to call for the complete details of cash deposits (old and legal notes) from the banks and has also failed to make a comparative analysis of deposits of earlier year and subsequent year from the respective banks and also from the assessee - PCIT held that in view of the audit objection raised by the IAP as well as the direction received from CCIT, Pune, the assessment order passed by the A.O. u/s. 143(3) is held to be erroneous insofar as it is prejudicial to the interest of the Revenue - HELD THAT:- A.O. has sought for details pertaining to all the issues raised by the ld. PCIT during the assessment proceedings and has also received adequate reply from the assessee by way of written submission and documentary evidences to substantiate the assessee’s claim, pertaining to these issues. So from this, we can infer that there was no lack of enquiry pertaining to the issues raised. While considering the fact that whether there was inadequacy in conducting the enquiry by the A.O. was to be looked into in view of the propositions laid by the various courts. The assessee has relied on the decision of Brahma Centre Development Pvt Ltd. [2021 (7) TMI 347 - DELHI HIGH COURT] wherein it was held that the inadequacy in conducting the enquiry by the A.O. cannot be the reason for the ld. PCIT to invoke the provision of section 263 of the Act. From the facts of the case, it is observed that the A.O. has enquired into the details of the cash deposits during demonetization period and there is no infirmity in the conclusion arrived at by the A.O. For the issue pertaining to the deduction u/s. 80P to the assessee for which the assessee has also furnished sufficient evidences in support of its claim, we are of the view that as there are divergent views in relation to interest received from the deposits made in co-operative banks, the A.O. is said to have taken one of the view possible and has allowed the impugned deduction. A.O. has considered the submissions of the assessee and has taken one of the plausible view and passed the assessment order. We find no latches and mistakes committed by the A.O. while passing assessment order. In view of the decision by Hon'ble Apex Court in Malabar Industrial Co. Ltd. [2000 (2) TMI 10 - SUPREME COURT] merely because two plausible views are available and the A.O. has taken one view, the jurisdiction u/s. 263 of the Act cannot be exercised and we thereby hold that exercise of power u/s. 263 of the Act was not in accordance with the law. Appeal filed by the assessee is allowed.
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