TaxTMI 
TaxTMI 
2015 (4) TMI 324
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....ances of the case, the learned CIT erred in cancelling the assessment order passed by the Assessing Officer on 24th February, 2012 u/s.143(3) of the I.T. Act and directing the Assessing Officer to make a fresh assessment." 2. CIT called for and examined the assessment proceedings for A.Y. 2008-09 in assessee's case and observed that assessment order passed u/s. 143(3) r.w.s. 144C of the Act on 24.02.2012 by Additional CIT determining total income at Rs. 1,36,99,26,007/- was erroneous in so far as it was prejudicial to the interest of Revenue on following grounds: "The assessee had charged the P&L account with Rs. 6,04,00,000/- which is currency Swap Loss on account of hedging of Rupee loan with Dollar loan through OTC contracts with Banks. Thus, the loss incurred on such hedging activity was speculative in nature [not excluded as per clause (d) to section 43(5) and was not allowable against income from non-speculative business." Accordingly, a notice dated 10.03.2014 was issued and whereby assessee was asked to explain as to why appropriate order u/s. 263(1) of the Act should not be passed. In response to same, Learned Authorized Representative for the assessee made submissions ....
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....ct for purchase or sale of a commodity and hence the provisions of section 43(5) cannot be applied to currency and accordingly, hedging transaction cannot be regarded as speculative transaction. (iv) The ITAT Chennai Bench in the case of Patersons Securities Pvt. Ltd. (127 ITD 386) has held that derivatives are not a contract for purchase or sale of any physical commodity and therefore cannot be treated as speculative transaction u/s 43(5). In the case of Friends & Friends Shipping Pvt. Ltd., the Gujarat High Court has held that loss incurred due to fluctuation in foreign exchange while implementing the export contracts which could not be executed is to be treated as business expenses. Hence, exception to clause (d) will apply to Currency Swap Loss and the said loss is deductible as business expenditure." 2.2 With regard to enquiry conducted by Assessing Officer, CIT observed that no such inquiries have been conducted by Assessing Officer. Assessing Officer has simply accepted the claims of assessee and failed to make any enquiry which was called in the circumstances of the case. At the same time CIT observed that analysing the claim of assessee in detail, elaboration has been do....
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....bmitted that CIT erred in assuming his jurisdiction u/s.263 of the Act, whereas mandatory conditions for assuming such jurisdiction was totally absent, with the result that impugned order passed u/s. 263 is bad in law. On the facts and circumstances of the case, CIT erred in arriving at a conclusion without any basis whatsoever to the effect that the assessment order passed by Assessing Officer was erroneous as well as prejudicial to the interest of Revenue. Learned Authorized Representative mainly relied on the statement of facts-cum-synopsis filed before CIT running into 49 pages, wherein various contentions have been raised on issue at hand which will be dealt by us at appropriate place in this order. Learned Authorized Representative took us to the various factual and legal submissions filed before Assessing Officer to impress upon us that order of the Assessing Officer is neither erroneous so as to be prejudicial to the interest of revenue so as to invoke provisions of Section 263. Accordingly, same should be set aside. On other hand, learned Departmental Representative made detailed factual and legal submissions to support the facts that order of CIT passed u/s. 263 is valid ....
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....his issue in later para of this order. 4.3 On the point of inquiry, Learned Authorized Representative submitted that Assessing Officer has issued noticed dated 23.08.2001 u/s.142(1) as compiled on page 1 to 5 of the paper book filed on behalf of assessee and certified to be filed before Assessing Officer, which reads as under: "You are requested to furnish the following information/details. This letter is part of the Notice U/s.142(1) of the I.T. Act, and to be treated as such. 1. Please give year wise details of 'import entitlement licenses' of all types due to the company and state as to which of these were accounted and offered to tax in earlier years. 2. You have claimed Rs. 18,11,52,776 as deduction under 80IA of the Act for the year. In this regard please give following information. a) Which undertaking/enterprise is claiming the deduction, its location and address, what is the 'eligible business' of undertaking, give a detailed note. b) Give the copy of agreement the enterprise entered with the authorities referred in s. 80IA(4)(b) c) Give infrastructure facility developed and investment made details over the years, which is the initial year of claim a....
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.... to how the dividend received from non-resident company is exempt from tax in India. 10.Company received Rs. 141.61 crores on redemption of investments which include Rs. 710445 towards exchange rate difference (gain). Please explain as to why this amount should not be added to income. If it has already been accounted, please give details. 11.You have disallowed only Rs. 16855490 out of total prior period expenses of Rs. 2,19,15,076. Explain as to why the remaining amount of Rs. 5353722 should not be disallowed and added to income as this expenditure also does not relate to the present year. 12.What is Currency Swap. You have charged Rs. 6.04 crores of Currency Swap losses to P & L account. Please explain as to why the amount should not be disallowed and added to income. 13.Please see annexure XI to 3CD report. Following amount covered by section are unpaid Bonus unpaid Rs. 382978 Interest on buyers credit Rs.349685 Interest on LC Rs.209599 Please explain as to why these amounts should not be disallowed and added to income under section 43B of the Act. 14.What is 'Target Plus Scheme'. Please give details of achievements made by the company under the scheme an....
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....was received from Vyom Trade Link Pvt Ltd and Adani Retail Ltd. Please give rate of interest charged from Adani Infrastructure and Developers Pvt Ltd. Also give account statements of Adani Infrastructure and Developers pvt Ltd and Vyom Trade Link Pvt Ltd in your books. 23.Please give details foreign exchange received and foreign exchange paid and gross foreign exchange gain/loss. Please give exchange rate fluctuation which is adjusted against any assets during the year. Also give details of exchange rate fluctuation charged to P & L account. Please give details of interest paid outside India on any LC/loan and tax deducted thereon as per section 195 of the Act. 24.Please give details of shareholdings of directors having more than 10% voting rights and give their ledger account for the year. 25.Please give details of term loans and working capital loans (7166.36 cr) taken like bank (branch, loan account number, address) nature of loan, copy of the loan sanction letter and the details of the securities offered to the bank for availing the loan/credit. Also give copies of statements of assets filed to these banks as on 31.03.2009 in respect of these loans. Please give date of payme....
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.... in computation. If not please give details and reasons. 38.Please give details of premium paid, losses on settlements, and provision for losses for cash flow hedges in respect of derivative contracts which have been charged to P & L account, prefer notes A(t)] 39.Please give details of all brought forward losses available for set off as per your claim made in the returns and as per assessments completed by the department in the relevant years. 40.Please give following on a CD or DVD. a) all ledger accounts of income and expenditure in excel format b) all quarterly returns in forms 26Q and 27Q (and form 27A for each quarterly return in hard copy)" Learned Authorized Representative before us drew specific attention to the page no.2 of said compilation, wherein Assessing Officer vide query no.12 made certain enquiry touching issue at hand, which reads as under: "12. What is Currency Swap. You have charged Rs. 6.04 crores of Currency Swap losses to P&L account. Please explain as to why the amount should not be disallowed and added to income." 4.4 Above referred show cause notice and queries raised by Assessing Officer, was replied by assessee vide its letter dated 29.11.2011 a....
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....ompany has entered into swap contracts for the underlying being foreign currency denominated loans taken for the purpose of global trading business of the assessee company as is evident on perusal of sample copies of contracts with banks and notes forming part of Schedule - Secured loans being part of the Balance sheet. Since, the assessee company has entered into currency swap contracts for working capital loans which is pre-requisite for the dynamic business of export and import of commodities, the loss of Rs. 6.04 Crores being incurred in respect of circulating/working capital is an allowable expense u/s 37 of the IT Act as is held in various judicial pronouncements. The assessee company places reliance on the landmark decision in this context of the Hon'ble Supreme Court in the case of Sutlej Cotton Mills Ltd Vs C1T reported in 116 ITR 1 (SC).The relevant part of head note of the said decision reads as under: "Whether where profit or loss arises to an assessee on account of appreciation or depreciation in value of foreign currency held by him, on conversion into another currency, such profit or loss would ordinarily be trading profit or loss if foreign currency is held by ....
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....be recognized in profit and loss account for reporting period -Held, yes" Further, the loss of Rs. 1.23 Crores is incurred in, respect of hedging transactions in commodity derivatives entered into on commodity exchanges. On perusal of details submitted to your good self and Annexure XVII of the Tax Audit Report, it is evident that the assessee company deals in various agro products viz pulses, rice, sugar, soyabean oil etc and to hedge against the fluctuation in the price of agro products, the assessee company entered into commodity derivatives transactions in the year under consideration. Since, the loss of Rs. 1.23 Crores is incurred on derivative contracts to hedge against the fluctuation in the price of agro products which is traded by the assessee company, the said hedging loss being realized trading expenditure is allowable u/s 37 of the IT Act in view of various judicial pronouncements. (17) The assessee company has incurred Rs. 2,36,124 towards club expenses. The ledger account along with vouchers and invoices are submitted herewith. (Armexure-3) On perusal of the same, it is clear that the said expenses are incurred for the residential accommodation and food & beverages ....
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....ion. (25) In continuation of details submitted in respect of interest on term loans, we submit herewith the various dates of payment of interest on buyers's credit and local LC. We may submit that the assessee company has already disallowed, the said interest expense as disclosed in Annexure XI of the tax audit report, in the return of income. (Annexure-6) (26) The block of asset wise vouchers and invoices evidencing addition/acquisition to fixed assets are submitted herewith for your good selfs verification (Annexure-7) On perusal of the said details, it is evident that the major addition is in the block of vehicles, computers, furniture fixtures etc which is put to use as soon as they are acquired as is evident on perusal of the details submitted herewith. Further, the assessee company submits that it is having an in house internal audit department and external auditors who do statutory audit as well as tax audit and therefore, the date of put to use have been verified by all of them. Further, we confirm that the assesses company has not claimed additional depreciation on the plant & machinery. In so far as details of lease rent is concerned, we submit that Rs. 1.56 Crores....
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.... purchase of soyabean meal. We are submitting herewith invoice raised by AWL on the assessee company along with ledger account of vendor of AWL who has raised invoice on AWL evidencing back to back purchase price for the said prices. Further, the assessee company has purchased cut & polished diamonds from Aditya Corpex Pvt Ltd. Please find attached herewith the invoice raised by Aditya Corpex Pvt Ltd on the assessee company and invoice raised on Anand Trade Movers (Guj) Pvt Ltd by Aditya Corpex Pvt Ltd as a comparable transaction. (Annexure-10) On perusal of above transactions coupled with party wise comparables provided by us, it is evident that the assessee has entered into transactions with its related parties at prevalent market price. (38) The details of loss in respect of cash flow hedges in respect of derivative contracts as referred to in Note no A(t) are already submitted vide point 23 herein above and hence, the same is not submitted again. (39) On perusal of details of brought forward loss as shown in Annexure XV of the Tax Audit Report and claimed in return of income, it is evident that the said brought forward losses are short term and long term capital losses of A.....
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.... inquiry on the issue involved made by Assessing Officer is concerned, Assessing Officer made enquiries vide its letter dated 23.08.2001 u/s.142(1) as discussed above. Assessee has replied the same in detail vide its reply dated 29/11/2011 as discussed above. So it is not appropriate to allege that Assessing Officer has made no enquiry or insufficient enquiry. We find that Hon'ble Gujarat High Court in case of Commissioner of Income tax-I vs. Amit Corpn. (2012) 21 Taxman.com 64 (Guj.) has held that Assessing Officer while framing assessment order is supposed to call all record of the assessee and having perusing the same order is passed then assessment order could not be revised in exercise of revisional power u/s.263. Even in case before us, we find that notice dated 23.08.2011 issued by the Assessing Officer u/s. 142(1), wherein Assessing Officer has almost raised 40 issues and on each of the issue, assessee has replied the same in detail to concerned Assessing Officer as discussed above. Having considered the same, Assessing Officer reached to certain conclusion. In such situation, it cannot be alleged that Assessing Officer has not applied his mind on the issue at hand, before ....
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....it or loss arises to an assessee on account of appreciation or depreciation in value of foreign currency held by him, on conversion into another currency, such profit or loss would ordinarily be trading profit or loss if foreign currency is held by assessee on revenue account or as a trading asset or as part of circulating capital embarked in business - Held, yes - Whether, however, if foreign currency is held as a capital asset or as fixed capital, such profit or loss would be of capital nature - Held, yes " 4.7 As stated above, complete details and break-up of aforesaid Currency Swap Loss alongwith a sample contract with Barclays Capital formed part of Annexure-I to the aforesaid letter dated 29th November, 2011. The Assessing Officer considered all the relevant issues during course of assessment proceedings and various replies and explanations filed on behalf of assessee-company and having duly considered vis-a-vis the documentary evidences and the audited accounts. Thereafter the assessment order was passed wherein total income was determined by Assessing Officer at Rs. 136,99,26,00/- as against returned income (as per revised return) of Rs. 117,58,16,576/-. Assessing Officer ....
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....s clause- (a) a contract in respect of raw materials or merchandise entered into by a person in the course of his manufacturing or merchanting business to guard against loss through future price fluctuations in respect of his contracts for actual delivery of goods manufactured by him or merchandise sold by him; or (b) a contract in respect of stocks and shares entered into by a dealer or investor therein to guard against loss in his holdings of stocks and shares through price fluctuations; or (c) a contract entered into by a member of a forward market or a stock exchange in the course of any transaction in the nature of jobbing or arbitrage to guard against loss which may arise in the ordinary course of his business as such member; o] (d) an eligible transaction in respect of trading in derivatives referred to in clause 35[(ac)] of section 236 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) carried out in a recognised stock exchange;] shall not be deemed to be a speculative transaction. Explanation.-For the purposes of this clause, the expressions- (i) "eligible transaction" means any transaction,- (A) carried out electronically on screen-based systems throug....
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....as such, there can be no question for providing an exception in that regard in the proviso. 4.11 We find that ITAT Chennai Bench in case of DCIT vs. Patersons Securities Pvt, Ltd. (127 ITD 386) has held as under: "3. We have heard the rival submissions, the available material on record and have also carefully treated through the relevant provisions of the Act and related precedents thereof. Before we venture to decide the controversial issue, we have to understand as to what exactly derivative means and what is exact meaning of transaction in respect of trading in derivative insofar as income-tax is concerned. After clearly understanding the actual legal meaning of the derivative trading vis-a-vis the speculative transaction, we cannot resist ourselves to arrive at the same conclusion on which the Learned CIT(A) has actually arrived. A derivative is a financial instrument, the price of which has a strong correlation with an underlying commodity, currency, economic variable or financial instrument. The different types of derivatives are "future contracts, forward, swaps and options". They are traded on derivatives markets or over the counter (OTC). The market traded derivatives ar....
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....see claimed the sum as business loss. Revenue was of the opinion that the loss was speculative in nature. Bombay High Court following the decision of the Calcutta High Court in the case of Soorajmull Nagarmull [supra) held that the expenditure would not be covered under section 43 [5) of the Act as speculative transaction. It was observed as under: "The assessee was not a dealer in foreign exchange. The assessee was a cotton exporter. The assessee was an export house. Therefore, foreign exchange contracts were booked only as incidental to the assessee's regular course of business. The Tribunal has recorded a categorical finding to this effect in its order. The Assessing Officer has not considered these facts. Under section 43(5) of the Income-tax Act, "speculative transaction" has been defined to mean a transaction in which a contract for the purchase or sale of commodity is settled otherwise than by the actual delivery or transfer of such commodity. However, as stated above, the assessee was not a dealer in foreign exchange. The assessee was an exporter of cotton. In order to hedge against losses, the assessee had booked foreign exchange in the forward market with the bank. H....
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....fically. 4.13 The normal practice with department is that assessment order contains detailed discussion only on such issues which are decided against assessee and issue which are decided in assessee's favour do not contain any much discussion or any discussion in the assessment order. In such situation, it is not appropriate for Commissioner to invoke his jurisdiction u/s. 263 of the Income Tax Act, with a view to reverse the completed assessment order on alleged ground that such assessment was erroneous and prejudicial to the interest of revenue. To sum up, we find that assessment order was passed after thorough scrutiny and after due application of mind on relevant issues on the point. Claim of currency swap loss of Rs. 6,04,00,000/- was specifically inquired into during the course of the assessment proceedings and Assessing Officer raised all relevant queries on this issue. Assessee filed detailed replies on this issue accompanied by all documentary evidences in support of its claim. Assessing Officer after due application of mind concluded that the currency swap loss was allowable having regard to the provisions of section 43(5) of the Act. 4.14 Even if it is assumed that two....
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....x Act along with the requirement letter. After considering the material produced by the assessee and the explanation offered, the Income-tax Officer framed the assessment determining the total income at Rs. 32,900. The Commissioner of Income-tax held that the order was erroneous and prejudicial to the interests of the Revenue, in so far as the Income-tax Officer had not carried out any investigation either while adding certain amounts in the total income or while accepting the assessee's explanations on the various points. The Tribunal set aside the order of the Commissioner of Income-tax. On a reference: Held, that the finding of fact by the Tribunal was that the assessee had produced relevant material and offered explanations in pursuance of the notices issued under section 142(1) as well as section 143(2) of the Act and after considering the material and explanations, the Income-tax Officer had come to a definite conclusion. Since the material was there on record and the said material was considered by the Income-tax Officer and a particular view was taken, the mere fact that different view can be taken should not be the basis for an action under section 263. The order of r....
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....lusion that particular income had escaped assessment on account of non application of mind by the Assessing Officer. The Tribunal was right and the order of revision was not valid." In above case, the Hon'ble Delhi High Court has relied on its earlier decision in case of CIT vs. Sunbeam Auto Ltd., 332 ITR 167 has observed as under: ". . . . As noted above, the submission of learned counsel for the Revenue was that while passing the assessment order, the Assessing Officer did not consider this aspect specifically whether the expenditure in question was revenue or capital expenditure. This argument predicates on the assessment order, which apparently does not give any reasons while allowing the entire expenditure as revenue expenditure. However, that by itself would not be indicative of the fact that the Assessing Officer had not applied his mind on the issue. There are judgments galore laying down the principle that the Assessing Officer in the assessing order is not required to give detailed reason in respect of each and every item of deduction, etc. Therefore, one has to see from the record as to whether there was application of mind before allowing the expenditure in questi....
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....s of the firm including the goodwill was not found correct. The CIT has mentioned that firstly the entire transaction has been routed in a manner to avoid tax. It was pointed out that M/s. Lesma Ltd., a company incorporated in Cyprus invested Rs. 67.09 Crs. in a company called Sanghavi Foods Pvt. Ltd. The share capital of Sanghavi Foods Pvt. Ltd. was increased from Rs. 1.33 Crs. to Rs. 2.66 Crs. and the shares were issued at a premium of Rs. 67.09 Crs. Later on, Sanghavi Foods Pvt. Ltd. invested Rs. 52.42 Crs. in M/s. Deepak Foods and out of the said amount Rs. 21.52 Crs. was withdrawn by the assessee which is subject matter of tax as dealt by the concerned CIT above. 6.3 The CIT has stated that the amount of goodwill has been decided on an arbitrary basis without recognizing the principles of natural justice. He has referred to the profit earned by M/s. Deepak Foods and has stated that it was impossible to determine the goodwill at such a huge figure. According to him, the entire transaction has been routed under the garb of goodwill and therefore, he has stated that the amount received of Rs. 21.52 Crs. should be taxed on a protective basis under the head income from other sourc....
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....e to tax. The Assessing Officer, however, taxed the said amount as long term capital gain. The Assessing Officer derived support from a decision of the Pune Bench of the Tribunal in the case of Shevantibhai C. Mehta v. ITO 83 TTJ 542 (Pune). The assessee took up the matter in appeal before the Commissioner of Income-tax (Appeals). 3. Before the Commissioner of Income-tax (Appeals), assessee relied on a subsequent decision of our coordinate Bench in the case of Mr Riyaz A Shaikh v. ITO vide ITA No 352/PN/06 dated 29.10.2010, wherein the Tribunal held that amounts received by the partner on his retirement are exempt from capital gains tax. The Commissioner of Income-tax (Appeals) has since deleted the impugned addition and against this decision, the Revenue is in appeal before us. 4. The learned departmental Representative supported the order of the Assessing Officer. According to the learned Departmental Representative, the additional consideration received by the assessee was on account of relinquishment of his pre existing rights in the partnership firm, and therefore, the same was in the nature of capital gain liable to tax as per the provisions of sections 45 read with section....
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....Hon'ble Bombay High Court in a recent decision in the case of Prashant S Joshi (supra) has noted the aforesaid legal position. In this circumstances the reliance placed by the authorities below on the judgment of the Hon 'ble Bombay High Court in the case of Prashant S Joshi (supra) has also noted the omission of section 47(ii) of the Act and insertion of section 45(4) of the Act with effect from 1.4.1988. Considering the entirety of the legal position, it has been affirmed by the Hon'ble High Court that amounts received by the partner on his retirement, are exempt from capital gains tax. In this view of the matter, we find it appropriate to allow the claim of the assessee and accordingly the order of the CIT(A) is set aside. The AO is directed to delete the impugned addition. Thus, in Ground Nos 2 & 3, assessee succeeds as above." Therefore, we do not find any error in the order of the Commissioner of Income-tax (Appeals) and accordingly, affirm his order. The revenue fails on this Ground of appeal." Nothing contrary was brought to our knowledge on behalf of revenue with regard to above legal preposition. The assessee further clarified that the decision of ITAT, Pune....
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....ed on retirement from partnership is not taxable. Secondly, the Hon'ble Bombay High Court in the case of Riyaz Shaikh (supra) has also affirmed that the amount received by a partner at the time of retirement is not taxable. Thus, considering the recent decisions of Jurisdictional Bombay High Court and ITAT, Pune as discussed above, the order of Assessing Officer cannot be said to be erroneous as to be prejudicial to the interest of revenue to invoke the provisions of section 263 of Act. 6.7 Regarding the contention of CIT that the entire transaction was an arranged transaction. According to him, the amount received by the assessee as goodwill was not correct since the goodwill of M/s. Deepak Foods was much less. The copy of the balance sheet of Deepak Foods for F.Y. 2007-08 has been placed on pages 123 to 129 of the Paper Book filed by assessee reveals that the total revenue was Rs. 9.19 Crs. and the net profit was Rs. 85.49 lakhs. The concerned CIT in his order has considered the turnover and profit of M/s. Deepak Foods for the earlier years and has held that the goodwill should be computed as per the super profit method. According to the CIT, the goodwill as per the super profit....
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.... is a revenue receipt chargeable to tax as income from other sources. This view is fortified by the decisions Mumbai Bench in the case of Niyati B Yodh [4 SOT 941 (Mum)], wherein, the payment received by legal heir of tenant under a tripartite agreement between such legal heirs, landlord and purchaser for handing over peaceful possession to the purchaser being capital receipt could not be brought to tax as income from other sources. The similar view has been expressed in the case of CIT Vs. Smt. T.P. Sidhwa (1982) 133 ITR 840 (Bom), wherein it was held that the income from house property earned by one who was not owner was held not assessable under the head income from other sources. The mere fact that rent received in the absence of ownership could not be brought to charge u/s.9 would not enable the revenue to bring it under the residuary head i.e. "income from other sources." 6.9 Regarding the allegation of CIT that the assessee has resorted to tax planning. As per the above discussion, the retirement of partner does not amount to a transfer for the purposes of capital gains. The court has held that if transactions are arranged as per law, simply because they lead to tax reducti....
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.... the Commissioner to invoke the revisional jurisdiction under section 263 of the Act. The Assessing Officer had taken a particular view on the basis of the evidence produced before him. On the basis of the evidence before the Assessing Officer and materials which were collected by the Commissioner in revisional proceedings, the Commissioner had taken a different view. However, in the revisional proceedings under section 263. it was not open for the Commissioner to take such a different view. There was nothing on record to suggest that the view taken by the Assessing Officer was unsustainable in law." Hon'ble Delhi High Court in case of CIT vs. DLF Ltd., 350 ITR 555 (Del.). held that It is not mere prejudicial to the Revenue or a mere erroneous view which can be revised, under section 263 of Income-tax Act. There should be added element of "unsustainability" in the order of Assessing Officer, which clothes the Commissioner with jurisdiction to issue notice, and proceed to make appropriate orders under provision of Section 263. Hon'ble Supreme Court in case of CIT vs. Greenworld Corporation, 314 ITR 81 (SC) observed that scope of provisions of section 263 of the Act is no longer res....
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.... prejudicial to the interest of Revenue, unless the view taken by the ITO is unsustainable in law. It is a generally noticed that during the course of assessment proceedings, the AO examines numerous issues and generally, the issues which are accepted do not find mention in the assessment order and only such points are taken note of on which the assessee's explanations are rejected and additions/disallowances are made. In such a situation, we are of the view that provisions of s. 263 cannot be resorted to and for which we draw support by the decision of H'ble Bombay*High Court in the case of Gabriel India Ltd (supra). We also draw support from the decision of H'ble Delhi High Court in the case of CIT vs. Honda Sial Power 333 ITR 547 (Del), where it has been held that when a regular assessment is made u/s 143(3) a presumption can be raised that the order has been passed upon on application of mind. Before us, Revenue has not brought any material on record to demonstrate that the view taken by the AO was an impermissible view and was contrary to law or was upon erroneous application of legal principles necessitating the exercising of Revisionary powers u/s 263. Further, t....