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2022 (8) TMI 683 - AT - Income TaxRevision u/s 263 - As per CIT assessee firm has paid interest on unsecured loan of 3 ex-partners but not deducted TDS on the interest amount so paid as per provision of section 194A - AO has not examined that interest paid by assessee firm to its partner on their capital balance relating to the period both before retirement and after retirement without deduction of tax at source is disallowable u/s 40(a)(ia) - HELD THAT:- PCIT has observed that the amount of interest on which no deduction of tax was made is liable to be disallowed and therefore, the submission put forth by the assessee is rightly rejected by the Ld. PCIT. However, he objected the decision of set a siding the passement the assessment order by holding it to be erroneous so far as prejudicial to the interest of revenue under clause (a) & (b) of Explanation 2 to section 263 as being not applicable to the facts of the present case in as much as assessee has furnished the certificate of CA under first proviso to section 201(1) of the Act which is a part of the record and therefore, section 40(a)(ia) is not convincing primarily, it was not before either the AO or the Ld. PCIT and secondly in the revision proceedings, the assessee shall get an opportunity to produce the material documentary evidence with certification of third parties if any required including CA’s certificate which would not cause any prejudice to the assessee. The assessee in proceedings before learned CIT u/s 263 of the Act and also before us, failed to demonstrate that all the facts were before the AO and how the AO has taken a conscious decision on merits which is a plausible decision which does not warrant interference u/s 263 of the Act to revise concluded assessment. We have also considered all the replies given by the assessee on merits before AO and CIT as well before us. We find that the assessee has failed to demonstrate on merits that the view taken by the AO before passing assessment order was a plausible view as being taken after due enquiries on the issue under consideration. Thus, we uphold the finding of the PCIT in categorizing the assessment as erroneous so far as prejudicial to the interest of the Revenue and as such order of the ld. PCIT passed u/s 263 of the act is sustained. - Decided against assessee.
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