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2019 (3) TMI 812 - HC - Income TaxRevision u/s 263 - SCN relates to two issues one interest on NPA accounts and other exclusion of securitization income - Exclusion of securitization income allowed by AO without revised return based on fact that it was spared over on succeeding years - Revision of order prejudicial to revenue - HELD THAT:- so far as interest of NPA's is concerned, it has to be considered and included only after realising the income from NPAs. This observation was made following CIT Vs Elgi Finance Limited.[2007 (6) TMI 180 - MADRAS HIGH COURT] wherein it had been held that the interest computed as taxable income has to be deducted. It was therefore found that no error had crept in the assessment order. The Income from the relevant transactions, when they were treated as non securitized were spread over the assessment years from 2005-2006 to 2011-2012, whereas the income from the very same transactions had been offered in full for the assessment year 2005-2006. It was clear that there was no reduction of income in view of the fact that though the income reduces in the return year, it goes to increase the income of the Assessee in the subsequent years. As there was neither any new income nor any fresh expenditure and it was only computation of income from the same set of transactions in two ways, namely, one treating them as securitized and other treating them as non securitized, no prejudice was caused to the Revenue. Consequently, it is seen that both the pre-requisite requirements for invoking revisional powers under Section 263 were not satisfied namely, an error and a prejudice caused to the Revenue. The Judgement of Goetze (India) Limited [2006 (3) TMI 75 - SUPREME COURT] would not apply to the facts of this case. - decided in favour of Assessee
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