The Tax Publishers2020 TaxPub(DT) 1198 (Ahd-Trib) : (2020) 203 TTJ 0014

INCOME TAX ACT, 1961

Section 263

As evident, AO during assessment proceedings had required the assessee to furnish details of expenses claimed against the impugned interest income by way of notice issued under section 142(1) and assessee in response to said notice made detailed submissions and assessment order was framed under section 143(3) after due verification by AO. Accordingly, order of AO could not be held as erroneous insofar as prejudicial to the interest of revenue on account of non-verification of facts and especially when Explanation 2 to section 263 inserted by the Finance Act, 2015 could not be applied retrospectively during the year under consideration.

Revision under section 263 - Erroneous and prejudicial order - No lack of enquiry on AO's part as alleged by Pr.CIT -

Pr. CIT held order of AO as erroneous insofar prejudicial to the interest of revenue on account of non-verification of expenses claimed against interest income.Held: As evident, AO during assessment proceedings had required the assessee to furnish details of expenses claimed against the impugned interest income by way of notice issued under section 142(1) and assessee in response to said notice made detailed submissions and assessment order was framed under section 143(3) after due verification by AO. Accordingly, order of AO could not be held as erroneous insofar as prejudicial to the interest of revenue on account of non-verification of facts and especially when Explanation 2 to section 263 inserted by the Finance Act, 2015 could not be applied retrospectively during the year under consideration.

Supported by:Torrent Pharmaceutical Ltd. v. Dy. CIT (2018) 196 TTJ (Ahd) 318 : 2018 TaxPub(DT) 5254 (Ahd-Trib) : (2018) 97 Taxmann.com 671 (Ahd), Malabar Industrial Co. Ltd. v. CIT (2000) 109 Taxman 66 (SC) : 2000 TaxPub(DT) 1227 (SC) and Narayan Tatu Rane v. ITO 70 Taxmann.com 227 (Mum)Relied:CIt v. Arvind Jewellers (2003) 259 ITR 502 (Guj) : 2003 TaxPub(DT) 342 (Guj-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2013-14



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