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2017 (8) TMI 223 - AT - Income TaxRevision u/s 263 - tds credit issue non examination by AO - Held that:- In the present case when the AO had noticed that there was a claim for credit of TDS on a sum of ₹ 74,19,860/- he is duly bound to examine whether the said sum has been offered to tax or not. Failure to do so by the AO renders the assessment order erroneous and prejudicial to the interest of the revenue and it is not the case of the appellant that this issue was examined by the AO during the course of regular assessment proceeding nor the appellant made any effort to demonstrate before us that any enquiry was caused by the AO during the course of assessment proceedings on this aspect. Therefore, it was held by the Hon’ble Supreme Court in the case of Malabar Industrial Co. Ltd., Vs. CIT [2000 (2) TMI 10 - SUPREME Court] that non examination of an issue by the AO renders the assessment erroneous and prejudicial to the interests of the revenue and even in the decision of the jurisdictional High Court in the case of CIT Vs. Infosys Technologies Ltd. [2012 (1) TMI 76 - KARNATAKA HIGH COURT ] is squarely applicable to the fact of the case. We may add here that the learned CIT had only set aside the issue for denovo examination by the AO, which is permissible as per the decision of the jurisdictional High Court in the case of Infosys Technologies Ltd. - Decided against assessee.
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