2018 (9) TMI 773

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.... ORDER Per Shri A.T.Varkey, JM This appeal filed by the assessee is against the revision order of Pr. CIT-2, Kolkata dated 07.03.2017 for AY 2012-13 passed u/s. 263 of the Income-tax Act, 1961 (hereinafter referred to as the "Act"). 2. The assessee has filed the return of income declaring total loss of Rs. 62,73,68,417/-. The assessment was completed later on by scrutiny on 24.03.2015 de....

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....l: "1. For that the invocation of the jurisdiction u/s. 263 by the Learned Principal Commissioner of Income Tax was bad-in-law so much so that there was no finding in the order under appeal as to how the assessment order is erroneous and prejudicial to the interest of the Revenue. 2. For that the Ld. Principal Commissioner of Income Tax failed to consider (a) the followi....

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....ssions and gone through the facts and circumstances of the case. We at the first instance itself note that the loan was sanctioned by the West Bengal Government and as per the terms and conditions of the loan sanctioned it was provided that the G.O. will be issued later on prescribing the terms and conditions of the loan sanctioned. Thereafter, the G.O. on the subject matter "loans and advances....

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.... sum of interest not paid cannot be allowed as expenditure in this A.Y. And since the AO has accepted the return of income of the assessee without looking into the fact that the assessee has not remitted the interest to the lender, so as per section 43B of the Act the expenditure claimed on interest incurred on the loan taken, could not have been allowed and, therefore, the order of the AO is erro....