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2024 (2) TMI 53 - ALLAHABAD HIGH COURTValidity of Revision u/s 263 - unexplained loan as detailed enquiries were not made by the assessing officer with respect to source of source - ITAT set aside revision proceedings - HELD THAT:- It is true, the observations made by the Principal Commissioner are generally relevant considerations. What may have however completely missed the attention of the PCIT is, in any case, other than the hypothetical circumstance of such transactions being disbelieved, if due enquiry being made, no cogent material existed before the PCIT to prima facie doubt the genuineness of such transactions. Here it is relevant to note that tax liability in that case would be about Rs. 18,00,000/- Thus, though it is true, by virtue of Explanation-2 added to Section 263 of the Act, a presumption exists as to the assessment order being erroneous and prejudicial to the interest of revenue, it does not empower the Commissioner of Income Tax to exercise revisional powers in each and every case. We find the present is not a fit case to offer interference. No substantial question of law is seen to exist in the context of tax dispute not exceeding Rs. 18,00,000/- that may otherwise exist. Under the prevailing litigation policy of the Union Government, such a dispute may not be brought to the High Court. As to the legality of the reasoning offered by the Tribunal, we leave it open to be tested in an appropriate case. In the context of the present dispute, the findings recorded by the Tribunal are well reasoned and based on material on record. - Decided against revenue.
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