2017 (5) TMI 907

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....engaged in the business of conversion of paddy into rice and sale of rice and its by-products. For the year under consideration, it declared a loss of Rs. 16,16,002/- and assessment was originally completed under section 143(3) on the total loss of Rs.8,22,020/-. Thereafter, Revisional Authority set aside the assessment under section 263 of the Act by observing as under:- "23. In view of the foregoing discussion and analysis with regard to the above said issues, it is, hereby held that the assessment order dated 21/12/2009 passed by the assessing officer is erroneous insofar as it is prejudicial to the interests of the Revenue and, as such, the order is hereby set aside with a direction to revise the same on the lines discussed hereinabo....

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.... acquisition of capital assets." 6. While giving effect to the order of the ld. Commissioner, the Assessing Officer called for the details and noticed that the assessee paid interest over threshold limit of Rs. 5,000/-, out of which assessee deducted tax at source on the total amount of Rs. 16,88,426/-. He further observed that the assessee failed to deduct tax on the interest paid over and above Rs. 5,000/- prescribed under section 194A and such interest expenditure is attracted by the provisions of section 40(a)(ia) of the Act. He listed out the names of the persons to whom interest was paid without deducting tax at source which works out to Rs.28,20,717/- and disallowed the same under section 40(a)(ia) of the Act. 7. Aggrieved, ass....

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....er. In other words, the Assessing Officer is not justified in invoking the provisions of section 40(a)(ia) of the Act. He also placed reliance on the following decisions to submit that when there is a specific direction given by the ld. Commissioner, the tax authorities cannot travel beyond the scope of direction given by the Revisional Authority:- a) DCIT Vs. Prescon Builders (P) Ltd. [171 TTJ 788 (Mumbai)] b) Cawnpore Chemical Works Pvt. Ltd. Vs. CIT [197 ITR 296 (All.)] 11. On the other hand, Learned Departmental Representative strongly relied upon the orders of the tax authorities. 12. I have carefully considered rival submissions and perused the record. 13. Ground Nos. 1 to 5 are general in nature and therefore, need not....