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2020 (12) TMI 468 - AT - Income TaxRevision u/s 263 - AO had not carried out any enquiry to verify three issues unsecured loan, rent paid to M/s. Kwality Confronts Pvt Ltd. and professional fees paid in excess of ₹ 20,000/- and that the submissions made by the assessee had been accepted by the AO without verification and proper enquiry - HELD THAT:- As regards to loan of ₹ 10,00,000/-, the ld Pr. CIT has observed that the assessee has failed to furnish the necessary details regarding the creditworthiness of the loan creditor and, the AO has overlooked this aspect while completing the assessment. From the ledger copy furnished by the assessee in its book, we observe that the assessee has shown closing balance of ₹ 10,00,000/- as on 31.3.2013, meaning thereby that the entire loan of ₹ 10,00,000/- has been refunded to the loan creditor. When the loan receiving and repaying is reflected in the assessee’s book, the transaction between the assessee and loan creditor is proved. Hence, it cannot be said the AO has not enquired the matter. As regards to security deposit of ₹ 80,000/- and professional fees of ₹ 2,35,000/- towards cash payment, we observe that the AO has not made proper enquiry into the matter and, therefore, the Pr. CIT is justified in directing the AO to revise the assessment order. This omission by the AO tagged the impugned assessment order as erroneous and prejudicial to the interest of the revenue. Since the assessment has already been set aside and the AO has been directed by the ld PCIT to re-frame it afresh after giving opportunity to the Assessee and after considering assessee’s explanation and all relevant material in accordance with law, therefore, we agree with the CIT and in our opinion, no interference is called for in the order of ld Pr. CIT. We dismiss the appeal filed by the assessee by upholding the order passed u/s 263. However, we may note that while passing the fresh assessment order, the AO should take into consideration the repayment of loan of ₹ 10,00,000/- by the assessee to the loan creditor, as is reflected in the ledger copy furnished by the assessee. Regarding other two addition, the AO will enquiry into the matter and pass order accordingly.
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