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2023 (9) TMI 1207 - AT - Income TaxRevision u/s 263 - non-verification of loans taken from four directors - HELD THAT:- We find that the loans from four directors were verified during the assessment proceedings by the AO by calling for information/details from the assessee. We note that the opening balance coming from the earlier years from these directors was Rs. 4,81,81,000/- whereas a sum of Rs. 3,17,00,000/- was taken from the four directors during the year. The assessee has filed before the AO all the evidences such as copy of financial statements, ITRs, bank statements and confirmations from the directors which were examined by the AO and these loans were accepted. We have also perused the copies/evidences filed before us and based on our examination and analysis, we are of the considered view that the revisionary jurisdiction and order passed u/s 263 of the Act in respect of this is not correct and can not be sustained. Whereas in respect of remaining item no. (ii) loans from M/s Original Dealcom were taken and from M/s Kalyan Securities Pvt. Ltd. and qua non-deduction of TDS on the difference of expenses we find this issue is not verified by the AO and the assessment order can be said to be erroneous and prejudicial to the interest of the revenue to this extent only. Accordingly we are inclined to modify the revisionary order passed u/s 263 of the Act by relying on the decision of Hon’ble Calcutta High Court in the case of Commissioner of Income-tax v. Polar Fan Industries Ltd. [1991 (5) TMI 24 - CALCUTTA HIGH COURT] Accordingly the revisionary order u/s 263 is modified and only treated as valid in respect of item no. (ii), (iii)&(viii). Appeal of the assessee is partly allowed.
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