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2013 (6) TMI 336 - HC - Income TaxJurisdiction power u/s 263 by CIT(A) - the assessment made with reference to the claim under Section 14A was erroneous and prejudicial to the interest of the Revenue - Tribunal set aside the order of the CIT - assessee had borrowed secured loans by issue of redeemable non-convertible debentures to the tune of Rs.60 crores, but utilized the same towards investment in shares - Held that:- It is clearly pointed out that the notice issued u/s 263 made no specific reference to materials showing the assessment as erroneous and prejudicial to the interest of the Revenue warranting revision of the order of assessment. Thus, unless the basis of revision satisfying the twin conditions, namely, erroneous and prejudicial to the interest of the Revenue, are pointed out by the CIT in invoking Section 263 certainly, the asssessee is entitled to raise the question of jurisdiction. As in present case Tribunal, as a matter of fact, found that the redeemable non-convertible debentures were issued between 17.3.2004 and 31.3.2004 and there were no investments made during this period. Being pure and simple factual finding, which has not been denied by the Revenue, there exists no ground to accept the case of the Revenue to dislodge the findings of the Tribunal. No basis for revision and that the factual finding as regards the issuance of redeemable non-convertible debentures is not correlated to any investment made during this period, no hesitation in rejecting appeal of revenue.
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