TMI Blog2022 (9) TMI 597X X X X Extracts X X X X X X X X Extracts X X X X ..... free deposits for the purpose of computing assessee s rental income. CIT(A) findings under challenge stand upheld therefore. - ITA No. 713/PUN/2019 - - - Dated:- 26-8-2022 - SHRI S. S. GODARA , JUDICIAL MEMBER AND SHRI G. D. PADMAHSHALI , ACCOUNTANT MEMBER Assessee by : Shri Pramod Shingte Revenue by : Shri M. G. Jasnani ORDER PER S. S. GODARA , JM : This Revenue s appeal for assessment year 2010-11 arises against the CIT(A)-1, Nashik s order dated 18-02-2019 passed in case No. Nsk/CIT(A)-1/375/2016-17, in proceedings u/s. 143(3) r.w.s. 147 of the Income Tax Act, 1961; in short the Act . Heard both the parties. Case file perused. 2. Coming to the Revenue s sole substantive grievance that the CIT(A) has err ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after making or causing to be made such inquiry as he deems necessary, pass such order thereon as the circumstances of the case justify, including an order enhancing or modifying the assessment, or cancelling the assessment and directing a fresh assessment. . The reading of the above provisions makes it very clear that the power of suo motu revision u/s 263(1) is in the nature of supervisory jurisdiction and the same can be exercised only if the circumstances specified therein exist. Two circumstances must exist to enable the Commissioner to exercise power of revision u/s 263, namely (i) the order is erroneous (ii) by virtue of being erroneous prejudice has been caused to the interests of the Revenue. Hon'ble Apex Court in the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee that the initiation of proceedings has been based on audit objection has not been controverted by Revenue. We find that on identical issue in the case of Inderchand Amarchand Chopda Vs. CIT (supra), the co-ordinate Bench of the Tribunal after relying on the decision of Hon'ble Gauhati High Court in the case of B A Plantation Industries Ltd., (supra) has held that when Ld. PCIT assumed jurisdiction u/s 263 of the Act to give effect to the audit objection, the assumption of jurisdiction to be not valid. 10. On the merits of considering the interest free deposits for determining A.L.V., we find that Hon ble Bombay High Court in the case of CIT vs. Tip Top Typography (supra) has held that the notional rent on security de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in resorting to revisionary powers u/s 263 of the Act and also allowed the appeal of the appellant on merits. Respectfully following the decisions of Hon ble ITAT, Pune for A.Y. 2011-12 in appellant s own case on similar issue, the addition of Rs.13,12,302/- for A.Y. 2010-11 is deleted. Ground of appeal Nos.4, 5 6 are allowed. 3. Suffice to say, it has come on record that this tribunals co-ordinate bench s order in assessee s case itself has examined the very issue on merits while deciding the same against the department (supra). That being the case, we find no merit in the Revenue s vehement arguments seeking to revive the impugned addition representing the notional interest on interest free deposits for the purpose of com ..... X X X X Extracts X X X X X X X X Extracts X X X X
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