TaxTMI 
TaxTMI 
TaxTMI 
2018 (12) TMI 316
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....d for giving advance to M/s TATA Teleservices P Ltd" is not based on facts or realty. 4. This is merely a change of opinion. No new facts have been brought on record which is contrary to the available and existing material, information to substantiate the proposed revision. 5. The Learned Commissioner ought to have demonstrated as to how the entries made could translate into income in the hands of the appellant and thus resulting in an order being prejudicial to the interest of revenue. 6. The addition of explanation 2 to section 263 w.e.f 1.6.2015 makes it very clear that the provisions of section 263 can be invoked only when orders were passed without making enquires and verifications, which is reasonable and prudent. The powers vested in not unfettered. In the case of the assesse details were sought and were submitted and the same was considered by the assessing officer while passing the assessment order. 7. The provisions of the envisages a twin condition - recourse to section 263 cannot be taken if the impugned order is erroneous but not prejudicial to interest of revenue or if it is prejudicial to the interest of revenue but not erroneous. Malabar Industrial Co Ltd v CIT ....
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.... was incurring a huge loss and its net worth was completely eroded. Further the business for which the payments were made were being discontinued and that company itself was planning to close or merge with another mobile telephone company. 14. The Appellant craves leave to add. to alter, to amend or to delete any or all the above grounds of appeal, at or prior to hearing of the appeal as may be required to enable the Honorable Bench complete this appeal in accordance with law. 15. For these and other grounds that may be urged, the appellant prays that the order be set aside." 3. Brief facts are that it is noted by Pr.CIT in Para 2 of this impugned order that it was noticed that the assessee had debited to P&L Account an amount of Rs. 1,00,39,549/- under the head "Bad Debts Written off", which was advance paid to M/s. Tata Tele services (P) Ltd. and further an amount of Rs. 79,75,474/- was debited under the head "Advance Written off", which was advance paid to M/s. Sivan & Co. It is further noted by Pr.CIT in same Para that it appears that the above advances are capital in nature, and hence on prima-face evaluation, could not be allowed to be written off. He further noted that on....
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....e as under. "In connection with the scrutiny assessment u/s. 143(3) for the Assessment Year 2013-14, you are required to file the following: (b)** produce or cause to be produced before me at my office at Nrupathunga Road the accounts and /or documents specified below: * A Brief Note on the Nature of Businessactivities. * Tax Computation Sheet both under regular provisions as well as u/s.115JB. * If return has been revised, reasons for revision and reconciliation statement between income as per original and revised return. * If Brought forward losses or MAT credit is claimed, the claim may be presented in tabular form giving year-wise details. The said claim of the assessee may be juxtaposed against the permissible quantum as per the Assessing Officer's Orders. * P & L A/c and Balance Sheet along with Notes on Accounts Sr Annual Report * Audit Report/3CD Report/3CEB Report, Report u/s 115JB, Form No. 56F, Form No l0CCB as applicable. * Details of additions to fixed assets of more than Rs. 1 Lakh with installation certificate. * Copy of E-filed Return. * Vakalatnama/authorizationletter,ifrepresentedbyrepresentative/ Ph.No. * Bank Account details viz. Bank Account No,....
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.... the sake of ready reference. These paras are as under. "7. Having heard both the parties and having considered the rival contentions, we find that the basic grievance before us is with regard to the validity of the proceedings u/s 263 of the Income-tax Act. As held by the Hon'ble High Court of Karnataka in the case of Infosys Technologies Ltd., (cited Supra), where the assessing authority has considered the issue at length and has taken a possible view, then merely because the said order does not meet the approval of the CIT, it would not become an erroneous order to be revised u/s 263 of the Income-tax Act. In the case before us, the assessing authority has considered the issue at length and at page 2 and 3 of his order, has held as under : "The assessee company has computed the profits from the business at Rs. 70,00,353/- and from this profits the exemption u/s 10A was claimed atRs.31,89,260/-. Theremaining profits of Rs. 38,11,093/- was set off against brought forward business loss. The assessee company vide letter dated 23rd Aug, 2007 submitted the reasons for claiming benefit u/s 10A before setting off the brought forward losses. It is the contention of the assessee that s....