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2023 (11) TMI 988 - AT - Income TaxRevision u/s 263 - As per CIT claim of interest expenses had been allowed erroneously by the AO and also has not examined genuineness and creditworthiness of the fund borrowed for advancing loan - HELD THAT:- We find that the Ld. PCIT has no where asked for examination of the genuineness or creditworthiness of the funds borrowed for advancing. During the course of the hearing on 19.07.2013 and 24.08.2013, the Ld. DR was asked to furnish necessary evidence in support that opportunity of being heard was given to the assessee on the issue of genuineness of examination of the borrowed fund. During hearing dated 04.09.2023, the Ld. DR filed a copy of the relevant folder of the Ld. PCIT including order sheet and submitted that as per the record no such opportunity was appeared to be have given. In aforesaid circumstances of the case, the order u/s 263 passed by the Ld. PCIT cannot be sustained. Since, we find that on the first issue, the Assessing Officer has already made disallowance of the interest and therefore, order cannot be revised on that count . In absence of any opportunity provided by the Ld. PCIT on the second issue, the assessment order cannot be revised on the second issue also therefore, on both these counts, order of the Ld. PCIT cannot be sustained. Accordingly, we quash the order passed u/s 263 of the Act by the Ld. PCIT. Assessee appeal allowed.
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