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2010 (1) TMI 639 - ALLAHABAD HIGH COURTRevision u/s 263 - Disallowance - On the basis of the information already placed on record, as was explained and demonstrated before us by Shri Garg, debit side as well as credit side of the trading account were explainable and that being so, the accounts appear to have been rightly acceptable by the Assessing Officer along with the trading result - For arriving at a legal error, there must be some prima facie material shown to exist whereby it could be said that the Assessing Officer faltered or took an incorrect or incomplete interpretation of law whereby a lesser tax than what was due under the relevant statutes was imposed - It was for the Department to have preferred an appeal before the Tribunal if they were really aggrieved of such deletion rather than the assumption of jurisdiction by the learned Commissioner under section 263 of the Act, which is legally wholly untenable - The Commissioner, whether administrative or appellate, does not have any second appeal powers which vest only in the Appellate Tribunal by virtue of section 253 Regarding genuineness of the security deposits - The assessing authority further found that the amount so deposited was returned back to them after the contract was over and the confirmatory letters were filed by the salesmen - It may be that the inquiry, according to the Commissioner of Income-tax, was not a detailed inquiry which ought to have been done but that will not make the order erroneous - The proceedings under section 263 of the Income-tax Act can only be taken in case if the assessment order is found to be erroneous and prejudicial to the interest of revenue - Decided in the favour of assessee
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