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2015 (10) TMI 81 - AT - Income TaxDisallowance of commission paid to two Managing Directors u/s 36(1) (ii) - revision u/s 263 - Held that:- The Hon'ble High Court has given a direction in respect of examining the scope of Section 36 (i) (ii) of the Act after taking into account various documents. Secondly, the enclosures supplied by the assessee to the Assessing Officer were actually given to the Assessing Officer and there was no proof given by the DR that at no point of time, that the documents were not available with the Department. The third aspect that AO has not applied his mind does not come in the purview of Section 263 of the Act. The scope of Section 263 of the Act has to be taken into account that if the Assessing Officer while passing the Assessment order has erroneously done the same and which is prejudicial to the interest of the revenue then only the revision of orders u/s 263 of the Act be passed by the Commissioner of Income Tax. The provision under Section 263 of the Act does not give powers to the Commissioner to make enquiry again for the issue which has been decided after verifying all the documents on record by the Assessing Officer. In fact the scope of Section 263 of the Act is in respect of the order passed by the assessing officer which is erroneous in so far as it is prejudicial to the interest of the revenue. In the present case, the Assessing Officer has verified all the documents in fact he has taken into consideration and after verifying the same has rightly held that no disallowance is to be made under Section 36(1) (ii) of the Act. We, therefore, set aside the impugned order of the Ld. CIT and restore the assessment order passed by the A.O. - Decided in favour of assessee.
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