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2016 (4) TMI 173 - BOMBAY HIGH COURT

2016 (4) TMI 173 - BOMBAY HIGH COURT - TMI - Revision u/s 263 - Held that:- The entire details were filed and the order itself indicates that it can be inferred that the Assessing Officer not only made enquiries, but satisfied himself with the assessee's replies furnished from time to time in support of its stand. When the Tribunal concludes in this manner and finally in paragraph 16 holds that the Assessing Officer took a perfectly correct or a possible view, then, the order passed by him canno .....

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so as to call for interference in our further appellate jurisdiction. - Decided in favour of assessee - Income Tax Appeal No. 1816 of 2013 - Dated:- 28-3-2016 - S. C. Dharmadhikari And G. S. Kulkarni, JJ. For the Appellant : Mr. Tejveer Singh For the Respondent : Mr. Soli E. Dastur, senior counsel with Mr. Niraj Sheth and Mr. B.G. Yewale i/b M/s. Rajesh Shah & Co ORDER P. C. 1. This is an appeal by the Revenue questioning the order of the Tribunal dated 5th February, 2013. 2. The respondent .....

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akes into consideration the two issues dealt with in the Tribunal's order, they would denote that the Foreign Currency Convertible Bonds (for short "FCCBs") and mark to market losses, the Assessing Officer passed an order which was erroneous and prejudicial to the interest of the Revenue. The Commissioner of Income Tax being accordingly satisfied, revised the order of the Assessing Officer. 5. Mr. Tejveer Singh invites our attention to paragraphs 6.1 and 6.3 of the Commissioner' .....

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d funds by way of FCCBs during the year under consideration. No investigation was carried out by the Assessing Officer to establish the name and address, genuineness and creditworthiness of the actual subscribers to such FCCBs in terms of section 68 of the Act. Mr. Tejveer Singh would submit that there is a clear reference made to a Circular and which Circular of the Revenue has been ignored by the Assessing Officer. He would also submit that this is not a case where the ingredients of section 2 .....

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damental and basic ingredients on which the satisfaction of the Commissioner must be based are absent. The Assessing Officer did make an enquiry and considered all the materials. Merely because in the submission of Mr. Tejveer Singh the concession that is recorded in the Tribunal's order was lack of discussion / reference to all aspects in the assessment order does not mean that the Commissioner was justified in exercising his jurisdiction or power under section 263 of the Act. Mr. Dastur re .....

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ate flowing from the law itself. In such circumstances, Mr. Dastur would support the conclusions of the Tribunal by reading out paragraphs 8.1 and 8.3 of the impugned order. 8. We have considered the rival contentions carefully. There is no reason to multiply this order with some decisions and reference to them in detail. Suffice it to state that Mr. Tejveer Singh relies on the decision of a Division Bench of this Court in Commissioner of Income Tax vs. Hindustan Lever Limited (2012) 343 ITR 161 .....

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fication of the records that the expenditure having a bearing on the profits of the units had not been considered for allocation. The Commissioner found that in the exercise carried out by the Assessing Officer there was indeed an error and the order of the Assessing Officer, therefore, is erroneous insofar as it is prejudicial to the interest of the Revenue. The rival contentions have been noted and in dealing with them, the Division Bench found that the Tribunal has interfered with a finding b .....

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nal inasmuch as the Assessing Officer sought explanation on why certain expenditure should not be allocated and the reply of the assessee contained virtually no material or details to establish that there was no direct nexus between the expenditure incurred under the heads in question and the business of the undertakings with reference to which the deduction was claimed. If there was a general explanation given that the expenditure, namely, capital on scientific research had not been incurred at .....

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o the contention raised by the assessee of having supplied the relevant details and giving a point to point reply that the observations relied upon by paragraph 17 by Mr. Tejveer Singh have been made. That must be seen in the backdrop of the facts. In such circumstances, when the order in that case was found to be erroneous insofar as it is prejudicial to the interest of the Revenue that the Commissioner rightly stepped in. 10. In the case before us, the concession of the assessee's authoriz .....

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