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2022 (5) TMI 935 - ITAT PANAJIRevision u/s 263 by CIT - validity of assumption of revisionary jurisdiction alleging on twofold grounds namely; non-satisfaction of necessary twin conditions and non-applicability of provisions for the reasoned order of assessment - HELD THAT:- Upon careful consideration of factual matrix as enumerated in the proceeding paragraphs, the adjudication calls to examination of multiple issues which were brought on record by Ld. PCIT such as verification of interest expense on borrowed capital / loans vis-à-vis interest free loans & advances advanced to person other than debtors, verification of interest payment without deducting tax at source and allowability of related expense connected therewith, verification of taxation interest on refund, verification of sale of plots & consequent capital gain, verification of claim of interest expense, verification of brought forward losses for there being set-off etc. In the absence of any reply from the appellant even after according several opportunities, the Ld. PCIT concluded the proceedings on the basis of available records and ultimately directed the Ld. AO to decide the issues raised on merits. However during the course of hearing, the Ld. AO taken us through the submission made during the course of original proceedings, to the extent establishing on records the submission were made and verified, however in the light of non-speaking assessment order touching only interest on refund issues, there was nothing on record that, to showcase the due inquiries into the other issues were made by the Ld. AO and after due application of mind the assessment was culminated. Indeed, the order of assessment is cryptic which ended before it started and in this context it mindful to judgement rendered in the light of re-opening of assessment in the case of “ITO Vs M/s Techspan India Pvt Ltd” 2018 (4) TMI 1376 - SUPREME COURT] Before the Ld. PCIT there was same tangible material in the form of assessment records, verification of which revealed the absence of necessary and adequate inquiries into the issues of limited scrutiny which remained unattended by the Ld. AO and hence the action of Ld. PCIT also find force by negative application of decision rendered in the case of “CIT Vs Gabriel India Ltd”[1993 (4) TMI 55 - BOMBAY HIGH COURT] We are of the considered view that, the action of Ld. PCIT is perfectly sustainable in law, to the effect holding the order of assessment as erroneous & prejudicial to the interest of revenue in the absence of necessary inquiries into issues, ergo we find no infirmity with the direction of 263 revisionary order, thus the grounds raised by assessee are dismissed.
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