Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (3) TMI 1225 - AT - Income TaxRevision u/s 263 by CIT - case was selected for scrutiny under CASS - As per CIT AO did not verified points related to Incorrect claim of pre-construction interest u/s. 24(b),Mismatch in interest income offered to tax and . Mismatch in Turnover - HELD THAT:- No observation or findings on the issue for the reason for selection of scrutiny, which were required to be done by the AO. AO has raised questions and replies submitted by the assessee, however from the paper book posted before us, no details pertaining to interest from ING Vysya bank was filed before the AO was accepted and passed the assessment order. As noticed from reply submitted by the assessee before CIT that assessee had availed loan from ING Vysya Bank incurred during the FY 2005, 2006 and 2007 for construction purpose but no documents was submitted during the course of hearing before the AO and assessee has claimed it as expenditure for the interest incurred during the construction period of Rs.2,66,89,424/-, which is a 1/5th of Rs.13,34,47,122/- As noted that in respect of interest income, the assessee has filed only reconciliation statement but no external documents/evidences fled and we also noted that the CIT observed that there is a difference in the turnover declared but the assessee submitted that difference due to inclusive of VAT tax. As submitted reconciliation but no details regarding proof of payments of tax etc. were submitted during the course of proceedings. AO should have examined all these things with the supporting/external documents but he did not do so. We found substance on the submissions of the DR and also on the order of CIT, hence, the order passed by the AO is erroneous & prejudicial to the interest of revenue. Appeal filed by the assessee is dismissed.
|