2020 (9) TMI 317

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.... Per C. M. Garg, JM This is an appeal filed by the assessee against the order of the Pr. CIT, Cuttack dated 29.3.2019 for the assessment year 2014-15. 2. In this case, the original assessment was completed u/s.143(3) of the Income Tax Act, 1961 (in short 'the Act') on 30.11.2016 determining the total assessed income at Rs. 2,20,440/- as against returned income of Rs. 1,22,700/-. 3. Therea....

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....ngly, the expenditure of Rs. 76,772/- claimed under the head interest on tanker loan' was required to be disallowed u/s.40(a)(ia) of the Act. Ld PCIT observed that since tax has not been deducted by the assessee and the AO has not disallowed the same, the assessment order is erroneous and prejudicial to the interest of the revenue. Therefore, the Pr CIT set aside the assessment order and directed ....

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....the time is required to be made, hence, question of disallowance on such expenditure u/s.40(a)(ia) of the Act does not arise. Ld counsel also contended that all the books of account were duly verified by the AO during the assessment proceedings and issue of interest payment was also examined and verified by him. Therefore, there is no requirement of invoking the provisions of section 263 of the Ac....

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....ent to M/s. Magma Financial Corporation. Therefore, it is a clear case of no inquiry and hence, the Pr CIT was right in directing the AO to modify the assessment by disallowing the impugned amount u/s.40(a)(ia) of the Act. 6. On careful consideration of the rival submissions, we are of the considered view that from the assessment order, it is vivid clear that AO has not made any enquiry on the ....