TMI Blog2021 (2) TMI 880X X X X Extracts X X X X X X X X Extracts X X X X ..... d in him in accordance with law and arrived at a conclusion and such a conclusion cannot be found to be erroneous simply because Commissioner does not feel satisfied with the conclusion. CIT ought not to have initiated proceedings u/s 263 of the Income Tax Act when already enquiry is made by the Assessing Officer. - Decided in favour of assessee. - ITA. No: 1431/Ahd/2018 (Assessment Year: 2013-14) - - - Dated:- 11-12-2020 - SHRI MAHAVIR PRASAD, JUDICIAL MEMBER AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER) Appellant by: Shri Aseem L. Thakkar, A.R. Respondent by: Shri Sanjeev Jain, CIT/DR ORDER PER MAHAVIR PRASAD, J.M. 1. This appeal filed by the Assessee is directed against the order of the Ld. Pr. CIT(A), Ahmedabad dated 27.03.2018 pertaining to A.Y. 2013-14 and following grounds have been taken: 1. On the facts and in the circumstances of the case, the order passed by the Ld. Pr. CIT u/s. 263 of the I.T. Act is ab initio void being bad in law. 2. On the facts and in the circumstances of the case, the Ld. Pr. CIT erred in setting aside the assessment order dated 11th March, 2016 and directing the Assessing Officer to pass a fresh assessment o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have been added to the book profit u/s.ll5JB by virtue of Explanation- 1(f) u/s.115JB. The Assessing Officer failed to add this amount to the book profit. (iii) During the previous year relevant to the Assessment Year 2013-14 the appellant-company entered into a Composite Scheme of Arrangement in the nature of Demerger and Restructuring of Share Capital under sections 391 to 394 read with sections 100 to 103 of the Companies Act, between the appellant-company and Yogeshwar Healthcare Ltd. As per this Composite Scheme, Ghuma Division of Yogeshwar Healthcare Ltd. (demerged company), alongwith all assets and liabilities shall be deemed to be transferred to and vested in the appellant-company with effect from the appointed date 1st April, 2012 at values appearing in the books of account of the demerged company. The learned Principal CIT observed that the appellant-company set off an amount of ₹ 36.02 crores being brought forward loss/unabsorbed depreciation belonging to the transferred segment of the demerged company, against its income for the Assessment Year 2013-14. The learned Principal CIT further observed that such set off of carry forward loss/unabsorbed depreciation w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plies filed by the appellant-company before the learned Principal CIT have been verbatim reproduced at pages 6 to 34 of the learned Principal CIT's order passed u/s.263. The learned Principal CIT rejected the written submissions made before him. 6. Now appellant company has come before us stating that Ld. Pr. CIT ought not to have initiated proceedings u/s 263 as Assessing Officer has already made enquiry with regard to disallowance of ₹ 6,53,882/-. Wherein it is submitted by the appellant company has already made disallowance of ₹ 6,53,882/- and same can be seen from statement of computation of income and Annexure-6 of Tax Audit Report. As we can see that Ld. A.O. has considered all aspects of aforesaid income and after thorough application of mind the A.O. has accepted the disallowance. Thus, we allow this ground of appeal. 7. The Assessing Officer has also made detailed enquiry with regard to demerger of the company and same order was passed by the Hon ble High Court and all the stake holders were informed by way of notice by the Hon ble High Court and same is part of paper book at page no. 88 wherein it is mentioned that assets and liability as the debit b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Taxmann.com 871 wherein it is held that where debit of referral charges during year in P L A/c was and nothing but writing off of income which was previously received and offered to tax and Assessing Officer had examined this issue by making a query which was replied to by assesse, assessment order could not be said to be erroneous so as to be prejudicial to interest of revenue . 10. It is well settled principle of law where A.O. has exercised quasi-judicial power vested in him in accordance with law and arrived at a conclusion and such a conclusion cannot be found to be erroneous simply because Commissioner does not feel satisfied with the conclusion. 11. We also draw support from a judgment of Jurisdictional High Court in the matter of Kamal Galani 95 taxmann.com 261 (Guj.) wherein it is held as under: Section 69A, read with section 263. of the Income-tax Act, 1961 - Unexplained money (Revision) - Block period 1-4-1996 to 25-7-2002 - Assessee was subjected to block assessment proceedings - During such proceedings, Assessing Officer found that there was introduction of amount in capital account of assessee - Further, assessee had received loan from his brother - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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