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2021 (8) TMI 824 - HC - Income TaxRevision u/s 263 by CIT - AO has not brought to tax the waived principle amounts of loans / borrowings - HELD THAT:- Assessing Officer's failure to consider the ratio of the decision of the Hon'ble Supreme Court in the case of T.V. Sundaram Iyengar and Sons Ltd. [1996 (9) TMI 1 - SUPREME COURT]with reference to the facts of the assessee's case, makes the relevant assessment order erroneous and prejudicial to the interest of the revenue. Commissioner of Income Tax has held that the Assessing Officer has failed to apply the decision of Supreme Court in T.V. SUNDARAM IYENGAR AND SONS, supra, to the case of the assessee wherein it was held that unclaimed balances out of deposits received from customers which were transferred to profit and loss account were assessable as income. Thus, the order of the Assessing Officer on account of incorrect application of the law, can be said to be erroneous in view of the law laid down by the Supreme Court in MALABAR INDUSTRIAL COMPANY, [2000 (2) TMI 10 - SUPREME COURT] Therefore, one of the conditions for invocation of Section 263 of the Act namely the order being erroneous is fulfilled in the fact situation of the case. For the aforementioned reasons, the substantial questions of law are answered against the assessee and in favour of the revenue.
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