TMI Blog2022 (1) TMI 796X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. and squared off in the year itself was recorded and even interest paid thereon was shown in the tax audit report in the details of payments made to related persons as specified u/s 40A(2)(b). The assessee was able to demonstrate before the Tribunal that all relevant records were available in the file of the Assessing Officer and he rightly applied the legal position and granted relief to the assessee. These aspects were examined by the Tribunal and it was found that there was no justification for invoking the power u/s 263 - Tribunal noted that the AO has taken a conscious decision bearing in mind the legal position that section 2(22)(e) was not applicable to the loan amount of ₹ 40 lakhs received by the assessee.Thus, we find ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lkata under section 263 of the Income Tax Act, 1961 completely ignoring the facts that the Assessing Officer in original assessment order passed under section 153A/143[3] of the Income Tax Act, 1961, erroneously not added income being deemed dividend under section 2[22][e] of Income Tax Act, 1961 chargeable to tax without making any enquiry and verification whatsoever which rendered the assessment order erroneous so as to prejudicial to the interest of the revenue ? c. Whether the learned Tribunal has committed substantial error in law in setting aside the order passed by Pr. CIT, Central-2, Kolkata under section 263 of the Income Tax Act, 1961 on account of its purported finding that the Assessing Officer has not only made the enquiry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the revenue accepting the legal position. However, the argument of the revenue was that the Assessing Officer while completing the assessment did not take note of the legal position in a proper manner and no enquiry was conducted. This argument was rejected by the Tribunal. We find on facts that the relevant documentary evidence was called for by the Assessing Officer during the course of assessment proceeding and the same were furnished by the assessee. The details of shareholders holding more than 10% shares in the assessee-company was also called for by the Assessing Officer, which was furnished by the assessee. In the tax audit report filed by the assessee along with the return of income, the unsecured loan of ₹ 40 lakhs recei ..... X X X X Extracts X X X X X X X X Extracts X X X X
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