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2019 (2) TMI 2065 - ITAT MUMBAIRevision u/s 263 by CIT - credit card write off not allowable under section 36(1)(vii), wrong calculation on claim of special reserve allowable under section 36(1)(viii) and interest on perpetual bond wrongly allowed by the AO - HELD THAT:- It is clear from the order of CIT as reproduced above that Ld. CIT has given a direction to the AO to pass the order in a specified manner by giving the assessee an opportunity of being heard before passing the order and clearly noted that assessment order will be modified to that extent. As per the provisions of section 263 CIT has the power to examine the assessment order passed by the AO and if he is of the view that the order passed by the AO is erroneous and prejudicial to the interest of the Revenue then the Ld. CIT may direct the AO to redo the assessment - section 263 does not contemplate setting aside an assessment order with a direction to pass the fresh assessment as per findings and directions of Ld. CIT. We are therefore of the considered view that the ld CIT has not exercised his revisionary jurisdiction as per the provisions of section 263. The case of the assessee is supported by a decision of M/s. Dev Prakash Contractor [2015 (11) TMI 859 - ITAT CHANDIGARH]. Thus it is clear from the above that by setting aside the assessment order , the Ld. CIT has exceeded his jurisdiction by directing the AO to pass the order on the issues as raised by the Ld. CIT in the revisionary order passed especially by directing that the assessment order would be modified to that extent and as such the order u/s 263 of the act can not be sustained as the ld CIT has expressed final opinion and has left no scope for AO’s verification of the controversial issues - Decided in favour of assessee.
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