TMI Blog2015 (8) TMI 854X X X X Extracts X X X X X X X X Extracts X X X X ..... - We are of the opinion that Section 263 of the Act, cannot be exercised by the authority in the instant case. We are of the opinion that once an inquiry has been made and the reply of the assessee has been considered, the same matter cannot be re-agitated on the ground that some further inquiry was necessary. In our view, Section 263 can be exercised where there was a lack of inquiry by the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sh Bansal, learned counsel for the respondent. The assessee has derived his income from the business of manufacturing of Tobacco and Gutkha under the name and style of M/s Jagdambay Flavours at Kanpur and Bhopal. For the Assessment Year 2009-2010, the return filed by the assessee was processed under Section 143 (1) of the Income Tax Act, 1961, which was subsequently, selected for scrutiny. Acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... charged per machine at a fixed rate in this year irrespective of the fact whether production took place or not while excise duty in the preceding year was charged on the basis of sales. The assessing authority, while passing the assessment order found that considering the nature and trends of the assessee's business, no adverse inference could be drawn and the trading results could not be dist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch was allowed and the order of the Commissioner of Income Tax, under Section 263 of the Act, was set aside. The department being aggrieved has filed the present appeal. Having heard the learned counsel for the appellant, we are of the opinion that Section 263 of the Act, cannot be exercised by the authority in the instant case. We are of the opinion that once an inquiry has been made and the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ground that the inquiry made was inadequate. We further find that the Tribunal has considered the decision of the Delhi High Court in the case of Commissioner of Income Tax v. Sunbeam Auto Ltd. (2011) 332 ITR 167 and in the case of CIT v. Vikas Polymers (2010) 194 Taxman 57(Delhi ) which are wholly applicable in the instant case. In the light of the aforesaid, we do not find any substantial qu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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