TaxTMI 
TaxTMI 
2019 (9) TMI 855
X X X X Extracts X X X X
X X X X Extracts X X X X
....s, perused the orders of the lower authorities, inter alia, paper book submitted by the assessee and other relevant orders placed on the record of the Tribunal. 4. Ld A.R. submitted that the impugned order passed by Pr. CIT u/s.263 of the Act is arbitrary, illegal and without jurisdiction in the facts and circumstances of the case. Therefore, same may kindly be quashed. Further, ld A.R. submitted that Pr. CIT has erred in exercising revisional power available u/s.263 of the Act without having jurisdiction as the completed assessment cannot be tinkered on the ground that order has not been passed in accordance with the decision of the Hon'ble Supreme Court. Ld A.R. submitted that the assessee has submitted all relevant documentary evidenc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ree assessment years i.e, preceding assessment year 2011-12 and subsequent assessment years i.e. 2013-14 & 2014-15. Ld A.R. submitted that in view of above factual position, the impugned order u/s.263 of the Act may kindly be quashed. 5. Replying to above, ld D.R. strongly supported the action of the Pr. CIT and submitted that the Assessing Officer has not made any enquiry on the issue of interest on bank deposit which was shown by the assessee in the balance sheet under the head "other current assets". Therefore, the Ld Pr. CIT was right in invoking the revisional power available to him u/s.263 of the Act. Ld D.R. also submitted that when there is no enquiry on a particular issue then the order has to be alleged as erroneous and prejudi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d on funds primarily brought for infusion in the business activity cannot be termed as income from other sources, whereas the interest income on bank deposits earned by the assessee company to commencement of its business is in the nature of capital receipt and accordingly be set off against pre-operative expenses. We considering the judicial precedence and the facts and circumstances of the present case, are of the substantive opinion that if the assessee company receives any amount which is inextricably linked with the process of setting up its plant and machinery, such receipts will go to reduce the cost of its assets. Hence such receipts are capital in nature and cannot be taxed as income under income from other sources. The assessee co....
X X X X Extracts X X X X
X X X X Extracts X X X X
....in the hands of the assessee. Ld A.R. informed the bench that the appeal of the assessee is pending before the CIT(A). 11. In view of facts and circumstances of the present case, we are of the view that Pr. CIT has proceeded to invoke the powers available to him u/s.263 of the Act and after perusal of the assessment records, he found that there was no enquiry by the Assessing Officer on the issue of interest earned by the assessee on short term fixed deposit with the bank. Thereafter, ld Pr. CIT issued notice u/s.263 of the Act and after considering the reply of the assessee and after allowing opportunity of being heard to the assessee, passed the impugned order by holding that the Assessing Officer has failed to bring to tax the interes....