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2019 (9) TMI 855 - AT - Income TaxRevision u/s.263 - although the assessment order dated 25.3.2015 was passed u/s.143(3) but there is no enquiry by the Assessing officer on the issue of interest of bank deposits which were picked up by Pr.CIT for invoking the jurisdiction of section 263 - HELD THAT:- Tribunal has taken a view on the issue of interest earned by the assessee on short term fixed deposit in favour of the assessee but this order of the Tribunal was not in existence when the ld Pr. CIT invoked powers u/s.263 of the Act and passed the impugned order revising the assessment. Subsequent Tribunal order defines favours the assessee’s stand on the issue of interest earned by the assessee from short term fixed deposit but while evaluating the legality of the revisional order passed by Pr CIT u/s.263 the Tribunal order (supra) cannot be taken into consideration as has been passed anti-dated. As brought to our notice by ld A.R. that the Assessing Officer has made addition in the reassessment order passed in pursuance to the impugned order of Pr. CIT u/s.263 of the Act, wherein, addition has been made in the hands of the assessee. Ld A.R. informed the bench that the appeal of the assessee is pending before the CIT(A). We are of the view that Pr. CIT has proceeded to invoke the powers available to him u/s.263 of the Act and after perusal of the assessment records, he found that there was no enquiry by the Assessing Officer on the issue of interest earned by the assessee on short term fixed deposit with the bank. Thereafter, ld Pr. CIT issued notice u/s.263 of the Act and after considering the reply of the assessee and after allowing opportunity of being heard to the assessee, passed the impugned order by holding that the Assessing Officer has failed to bring to tax the interest received as income of the assessee from other sources and, thus, the assessment order is set aside to the file of the AO on the above issue with a direction to examine same afresh and do the assessment denovo. These findings and observations of Pr. CIT in the order dated 22.2.2017 are quite correct and in accordance with the mandate of section 263 of the Act as there was no enquiry by the AO on the issue of interest earned by the assessee on short term fixed deposit with the bank. Therefore, Pr. CIT was right in holding that the order of the AO is erroneous and prejudicial to the interest of the revenue. The cognizance of the subsequent order dated 31.8.2018 of the Tribunal (supra) was not practically possible as this order was not in existence when Pr. CIT passed the impugned revisional order. Pr. CIT was right in revising the assessment order passed u/s.143(3) of the Act and directing the AO to pass the denovo assessment order on the said issue. - Decided against assessee
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