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2022 (10) TMI 164 - AT - Income TaxRevision u/s 263 by CIT - Deduction under Section 57 - Assessee case selected for limited scrutiny for verification of "Large deduction claimed under Section 57" - HELD THAT:- As regards the issue of payment of interest on borrowings and receipt on advances, we observe that the assessee attached a chart showing details of rate of interest paid and received. Besides, the assessee has brought to the notice of the AO that issue on hand was also raised in A.Y.2016-17 which was selected for limited scrutiny under CASS and after considering the facts of the case accepted his submission. Thus, after considering the entire facts in entirety and after application of mind, the AO accepted the assessee's explanation. Investment in immovable property - assessee submitted that Annexure 'B' of the tax audit report (which was submitted during the course of assessment proceedings) reflects investment in immoveable property as on 31.03.2016 and additions mainly on construction to the existing property except one new property purchased at K.K. Vihar Ajmer was made during the year. The balance sheet attached with the ROI reflects Housing loan from HDFC bank and payment of interest on housing loan reflects in capital account. Therefore, since entire facts are available on records, the AO did not require any further details particularly where the assessment is selected for limited scrutiny. It is a well settled position of law that if from the assessment records, it is evident that the Ld. AO has made due enquiries in response to which assessee has filed detailed submissions, then even if the assessment order does not discuss all aspects in detail with regards to claim of the assessee, it cannot be held that the order is erroneous and prejudicial to the interests of the Revenue. The above proposition has been upheld in the case of CIT v. Reliance Communication[2016 (4) TMI 173 - BOMBAY HIGH COURT], Smt. Anupama Bharat Gupta [2021 (4) TMI 1000 - ITAT AHMEDABAD], Goyal Private Family Specific Trust [1987 (10) TMI 43 - ALLAHABAD HIGH COURT], CIT v. Mahendra Kumar Bansal [2007 (7) TMI 149 - HIGH COURT, ALLAHABAD] - We, thus, find no error in the order of Ld. AO so as to justify initiation of 263 proceedings by the Ld. Pr. CIT. The Ground of appeal raised by the assessee is thus allowed. Appeal of the assessee is allowed.
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