Provision u/s 263 cannot be invoked merely because AO did not use any specific wording while allowing claim

Issue before Court:

Whether CIT rightly invoked provision under section 263.

Brief facts:

• The assessee firm was carried on the business of textiles and garments sale. The Revenue surveyed its premises under Section 133A during which certain discrepancies in accounts were found in the form of excess stocks and the balance constituted excess cash.
• The assessee surrendered this amount and incorporated them in the books of accounts. The final books produced during the course of hearing for the year ending 31.03.2006, disclosed that all these amounts were duly reflected. The assessee had filed a return claiming to be taxed for the sum of Rs. 42,44,290/-. Scrutiny assessment was completed and AO framed the order of Rs. 44,01,300/-.
• Subsequently CIT called for the record and was of the opinion that since the surrendered amount had not been disclosed over and above normal income and the surrendered stock was not accounted for properly, in addition to other existing discrepancies, the matter required re-examination under Section 263 of the Act.
• Accordingly, a notice was issued under that provision, which was resisted by the assessee. The CIT proceeded to finalize the assessment and added considerable amounts, and framed the assessment at a higher amount of Rs. 87,83,468/-.
• On appeal ITAT relying upon CIT v. Sunbeam Auto Ltd. 332 ITR 167 (Del) allowed assessee’s appeal and quashed the order passed u/s 263 by CIT.

Contention of the revenue: