TMI Blog2020 (3) TMI 179X X X X Extracts X X X X X X X X Extracts X X X X ..... such assessment order could not have been taken into revision in exercise of revisional power under Section 263 of the Act as assessment order cannot be said to be erroneous and prejudicial to the interests of the revenue. - R/TAX APPEAL NO. 761 of 2019 and R/TAX APPEAL NO. 762 of 2019 - - - Dated:- 10-2-2020 - MR. J.B. PARDIWALA AND MR. BHARGAV D. KARIA JJ. Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 for the Opponent(s) No. 1 ORAL ORDER (PER : MR. J.B.PARDIWALA) 1. This tax appeal under Section 260A of the Income Tax Act, 1961 [for short The Act, 1961 ] is at the instance of the Revenue and is directed against the order passed by the Income Tax Appellate Tribunal, Ahmedabad C Bench, Ahm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 013. In the meantime, the details of the revenue audit objection were communicated by the then Assessing Officer to the Assessing Officer of the Central Circle on 31st July, 2014. The assessment was finalized and the order under Section 153A read with Section 143(3) of the Act was passed dated 29th February, 2016 determining the assessed income at ₹ 8,30,030/. 4. The CIT thought fit to invoke its revisional powers under Section 263 of the Act. The CIT took notice of the fact that the assessee had shown to have received ₹ 42,11,011/as the interest income in the year under consideration. The CIT also took note of the fact that the assessee had claimed interest expenditure of ₹ 57,37,042/resulting into the declaration of l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st accepted what the assessee wanted him to accept without discussing the allowability or disallowance, the provisions of section 263 of the I.T. Act are found applicable to the assessee s case. The AO has not at all examined the eligibility of the assessee to claim deduction of this interest and has merely allowed that on the basis of, copy of ledger accounts only. The AO has not made any enquiry and has accepted the facts on its face value. This is to be termed as a case of only halfhearted enquiry as no definite conclusion can be arrived at merely on the filing of ledgers before the AO. Accordingly, it is held that there has been a complete non-application of mind by the AO while examining the expenditure. Thus, the view taken by the AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 29.02.2016 is erroneous and prejudicial to the interests of the Revenue to this extent. Accordingly, the order is set aside and AO is directed to make assessment in this regard after concluding enquiry and verification of the facts of the case and after giving sufficient opportunity of being heard to the assessee before finalizing the set aside assessment order. 5. The sum and substance of what has been conveyed in the order passed by the CIT is that there was no proper inquiry at the end of the Assessing Officer. 6. The assessee being dissatisfied with the order passed by the CIT preferred an appeal before the Tribunal and the Tribunal vide impugned order allowed the appeal and thereby, quashed and set aside the order passed by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s.153A r.w.s.143(3) of the Act order is erroneous and prejudicial to the interest of Revenue within meaning of section 263 of the Income Tax Act. 4. Now assessee has come before us with the grievance for order passed by the ld. Pr. CIT is wrong and already had adequate enquiry have been made by the Assessing Officer. 5. In this case, assessee has shown has to received ₹ 42,11,011/as interest income in the year under consideration, and has also claimed interest expenditure of ₹ 57,37,042/resulting into declaration of loss of ₹ 15,26,031/under the head Income from Other Sources . 6. We can see in this case, during search no incriminating material was found and ld. A.O. made adequate enquiry in this case. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... law involved in this appeal. The Tribunal has recorded a specific finding that during the search, nothing incriminating was recovered and the Assessing Office made adequate inquiry in the case. It is not in dispute that during the course of framing of assessment, the Assessing Officer had access to all the records of the assessee and after perusal of such records ultimately the Assessing Officer framed the assessment. The Tribunal is right in its final conclusion that such assessment order could not have been taken into revision in exercise of revisional power under Section 263 of the Act as assessment order cannot be said to be erroneous and prejudicial to the interests of the revenue. 9. We are convinced with the impugned order passed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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