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2021 (7) TMI 1182 - AT - Income TaxAssessment u/s 153A - disallowance of claim of 80IA deduction - whether regular assessments in assessee's cases could be held to be pending as per section 153A(1) second proviso or not? - HELD THAT:- We have not come across any such incriminating material relied upon by the learned lower authorities in A.Ys 2010-11 & 2011-12. We thus decline the Revenue’s argument quoting EN Gopa Kumar Vs. CIT [2016 (11) TMI 72 - KERALA HIGH COURT] and CIT Vs. Kesarwani Zarda Bhandar [2017 (4) TMI 57 - ALLAHABAD HIGH COURT] and CIT Vs. Rajkumar Arora [2014 (10) TMI 255 - ALLAHABAD HIGH COURT] to hold that the impugned assessments are not sustainable in law since not based on any incriminating material found or seized during the course of search. The same stands quashed in the former twin assessment years 2010-11 and 2011-12. The assessee's corresponding appeals are accepted on the forgoing legal issue thereby rendering all other pleadings on merit being rendered infructuous. Treating the interest income(s) in these twin assessment years as income from “other” sources than eligible for section 80IA deduction as business income - HELD THAT:- We prima facie notice that the assessee’s income from other sources also included dividend from mutual funds and rental receipts, etc. There is no indication at all in the learned lower authorities’ orders as to whether the assessee had proved the corresponding receipt to have been “derived” from the eligible undertaking(s) or not. Faced with this situation, we deem it appropriate to restore the instant identical issue back to the AO to be examined afresh subject to the condition that it shall be the duty and responsibility of the tax payer only to prove the foregoing clinching direct nexus between its interest and other income derived from the eligible undertaking within three effective opportunities of hearing. Revision u/s 263 - exercise of the PCIT’s revision jurisdiction holding the corresponding assessment dt.31.3.2015 as an erroneous one causing prejudice to the interest of Revenue on the ground that the AO had failed to compute 115JB section MAT qua assessee's provision for bad and doubtful debts of ₹ 1968.10 lakhs as per Expln.(1)(i) - HELD THAT:- As submitted before us that the assessee had very well made simultaneous reduction from the loans and advances on the assets side of the Balance Sheet which amounted to write of of the said debts not hit by the foregoing statutory provision. Mr. Afzal quoted hon’ble Gujarat high court’s Full Bench decision in CIT Vs. Vodafone Essar Gujarat Limited [2017 (8) TMI 451 - GUJARAT HIGH COURT]. We find no merit in the assessee's foregoing argument since it has not placed on record the corresponding books of account suggesting corresponding simultaneous reduction of the loans and advances on the asset side of the Balance Sheet. We thus quote hon'ble apex court landmark decision in Malabar Industrial Company Ltd. 2000 (2) TMI 10 - SUPREME COURT] and hold that the learned PCIT has rightly exercised its 263 revision jurisdiction in the given facts and circumstances of the case.
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