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2023 (6) TMI 343 - AT - Income TaxRevision u/s 263 - addition made u/s 68 of the Act in respect of unsecured loan received which is pending before ld CIT(A) - HELD THAT:- In the assessee`s case under consideration, Ld. PCIT has mainly exercised his jurisdiction u/s 263 for enhancement of the addition, which can be enhanced by ld CIT(A) u/s 251 of the Act. Since the assessee has filed the appeal before ld CIT(A) against the addition u/s 68 and ld CIT(A) by exercising his power u/s 251 of the Act may enhance the assessment. Hence, PCIT by exercising his jurisdiction u/s 263 need not to enhance the assessment especially when the appeal of assessee is pending for adjudication before ld CIT(A). Therefore, respectfully following the above legal precedents, the order of ld PCIT u/s 263 of the Act should be quashed. As from the assessee`s facts, it is abundantly clear that during the assessment stage, the AO asked the assessee to furnish the details and documents. In response, the assessee submitted reply with evidences before AO. Thus, all the documents, details and the explanations required by the AO were submitted by the assessee. Just because the AO does not bring these documents and details in his assessment order does not mean that AO has not conducted proper enquiry during the assessment stage. In fact, AO has applied his mind. Assessee is right in his submission that one has to keep in mind the distinction between "lack of inquiry" and "inadequate inquiry". As in the assessee`s case, it cannot be said that it is a case of 'lack of inquiry'. In view of the facts of the case and judicial pronouncements relied upon, it is well established that the impugned assessment order passed u/s. 143(3) dated 11.02.2021, was passed by AO after calling for relevant information and after detailed examination of the same. PCIT’s finding fault, with the order of the Assessing Officer is erroneous as well as prejudicial to the interest of revenue, on account of lack of inquiry, has to fail. Decided in favour of assessee.
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