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2014 (3) TMI 1089 - ITAT HYDERABADRevision u/s 263 - allowability of finance charges - CIT-A took entry under the head “MBB Transactions” as pertaining to third party - Held that:- CIT relied on the documents furnished by assessee before the A.O. during the scrutiny proceedings which indicate that entire details furnished before the A.O. were examined. In our opinion, learned CIT mistook the entry under the head “MBB Transactions” as pertaining to third party whereas, it is internal code given by the bank for the multi branch banking transactions. Since it is misunderstanding of understanding the word “MBB Transactions” lead to the proceedings under section 263, we are of the opinion that order of the Ld. CIT cannot be justified on any reason. Since the entire claim of finance charges has been examined by the A.O. and as he has disallowed the amount to the extent assessee could not furnish the details, any other opinion by the Ld. CIT cannot be justified Not only that there is nothing else to direct the A.O. to examine again when the claim itself was examined in the course of scrutiny and A.O. has came to a conclusion by disallowing part of the amount. No further purpose would be served by setting aside the order to A.O. to examine afresh, when Ld. CIT order did not indicate that there are any issues on which A.O. has not examined. Just because the invoices furnished by assessee contain the code of ‘MBB transaction’, it does not establish that these are third party transactions. For these reasons, we are unable to uphold the order under 263 passed by Ld. CIT as the order of the A.O. is not prejudicial to the interests of Revenue nor it is erroneous on facts. - Decided in favour of assessee.
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