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2017 (1) TMI 1387 - ITAT MUMBAIRevision u/s 263 - AO failed to examine the amount of loan from the sister concern - Held that:- It is noted that original order u/s 153C dated 28-2-2014 was passed in pursuance to search in the office of M/s Convention Hotels Pvt Ltd. Perusal of the assessment order reveals that the proceedings u/s 153C were initiated upon the assessee in relation to some documents seized from the office premises of M/s Convention Hotels Pvt Ltd. Details mentioned in the assessment order shows that the seized material pertained to the transactions that took place between the assessee and said company, M/s Convention Hotels Pvt Ltd. Under these circumstances, the jurisdiction of the AO in the proceedings u/s 153C was confined to the seized material on the basis of which impugned proceedings u/s 153C were initiated. Thus, the Ld.AO had no jurisdiction to examine the loan of ₹ 35 lakhs received by the assessee from M/s STI Products Pvt Ltd. Thus when the AO himself did not have the jurisdiction to examine the said loan, then how the Ld. Principal CIT can take a view that non examination of loan by the AO made the assessment order as erroneous and prejudicial to the interest of Revenue. - Decided in favour of assessee.
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