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2016 (8) TMI 1256 - AT - Income TaxRevision u/s 263 - issues were not properly inquired by the A.O. visà- vis Section 40(a)(ia) as well as TDS - Held that:- As seen to a specific query raised during the assessment proceedings, the assessee has given a specific reply which was accepted by the A.O. The Hon’ble Bombay High Court in the case of Gabrial [India] Ltd.[1993 (4) TMI 55 - BOMBAY High Court] has held that if the Assessing Officer has raised queries and the assessee has filed written submissions/explanation, merely because there is no discussion in the Assessment Order on the relevant issue, it cannot be said that such order becomes erroneous. Similar view has been taken by the Rajasthan High Court in the case of Ganpat Ram Bishnoi [2005 (8) TMI 106 - RAJASTHAN High Court]. We find that the Principal CIT has laid emphasis on the amended provisions of Section 263 wherein the explanation has been inserted. The same was emphasized by the ld. D.R. during the course of his arguments. The Hon’ble High Court of Delhi in the case of Anil Kumar Sharma [2010 (2) TMI 75 - DELHI HIGH COURT] has explained that “there is a distinction between “lack of inquiry” and “inadequate inquiry”. If there was any inquiry, even inadequate that would not by itself give occasion to the Commissioner to pass orders under section 263 of the Act, merely because he has a different opinion in the matter.” The assessment order reveals that on verification of submission made by the assessee, the A.O. has made addition of ₹ 3,43,700/- u/s. 40(a)(ia) of the Act. Therefore, it cannot be said that the Assessing Officer overlooked the provisions of Section 40(a)(ia) of the Act as alleged by the ld. Principal Commissioner in his order made u/s. 263 of the Act. Principal CIT had no occasion to invoke the provisions of Section 263 of the Act insofar as payments to CLP Asia is concerned. - Decided in favour of assessee. Interest paid on Foreign Currency Loan - Held that:- To a specific query, a specific reply was filed by the assessee along with supporting evidences. For the detailed reasons mentioned hereinabove, we find that insofar as this issue is concerned, once again the ld. Principal CIT erred in assuming the jurisdiction by invoking the provisions of Section 263 of the Act. Considering the facts in totality as discussed hereinabove, in our considered opinion, the assumption of jurisdiction u/s. 263 of the Act is uncalled for. We, accordingly, quash the order of the ld. Principal CIT made u/s. 263 of the Act. TDS on Registration Fees to IREDA - tds u/s 194J - Held that:- The payment of Registration Fees by any stretch of imagination cannot be construed as Professional Fees or FTS. In our considered opinion, the ld. Principal CIT has wrongly assumed the applicability of Section 194J of the Act on the impugned payment of Registration Fees. Therefore, the assumption of power vested upon him u/s. 263 of the Act is uncalled for and unwarranted on the facts of this issue. Assessee appeal allowed.
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