TaxTMI 
TaxTMI 
2020 (11) TMI 67
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....f the Revenue. 2) The Learned PCIT ought to have appreciated that the AO had made appropriate enquiries prior to finalizing the assessment, and that jurisdiction u/s. 263 cannot be invoked once the AO has taken one of the courses permissible in law, merely because the PCIT holds a difference opinion. 3) The Learned PCIT failed to note that no capital asset is purchased or capital expenditure incurred by the Appellant. 4) The Learned PCIT has failed to note that the said expenditure is a revenue expenditure related to the port business of the Appellant and it is rightly claimed as deduction u/s. 37 of the Act. 5) The Learned PCIT has erred in setting aside the order u/s. 143(3) for making a fresh de-novo assessment when the facts....
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....nitiation of proceedings u/s 263 of the Act is bad in law as the entire issue of allowability of legal and professional expenses of Rs. 10 lakhs was considered by the Assessing Officer and Assessing Officer took only possible view during the course of assessment proceedings placing reliance on the decision of the Hon'ble Bombay High Court in the case of CIT vs. Gabriel India Ltd., 203 ITR 108 and the decision of the Hon'ble Delhi High Court in the case of CIT vs. Sunbeam Auto Ltd., 332 ITR 167. 5. Upon due consideration of the explanation filed by the appellant, the Pr. Commissioner of Income Tax-2, Kolhapur had come to the conclusion that the assessment had been completed without proper enquiries as regards to the allowability of the lega....
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....isdictional High Court after placing reliance on the decision of the Hon'ble Madras High Court in the case of CIT vs. Bush Boake Allen India Ltd., 135 ITR 306 held that merely because the legal expenses were incurred in connection with the capital asset, the legal expenses will not be capital expenditure. He also placed reliance on the decision of the Hon'ble Jurisdictional High Court in the case of CIT vs. Gera Developments Pvt. Ltd., 387 ITR 691 in support of the proposition that when the issue was squarely covered by the Hon'ble Jurisdictional High Court the same cannot be the subject matter of revision. He finally contended that the ld. Pr.CIT was not justified in setting aside the whole of the assessment order placing reliance on the d....
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....itions of New Ship Lift System. From the perusal of para 6 at page no.10 of the Paper Book, it is crystal clear that during the course of assessment proceedings, the Assessing Officer had called for the details regarding the true nature of legal and professional expenses of Rs. 10 lakhs and the same was explained by the assessee on being satisfied the Assessing Officer had chosen not to make any addition. The fact that the assessment order does not discuss about this item of the expenditure does not mean that the Assessing Officer had not examined the issue. In the circumstances, it cannot be said that there was no enquiry by the Assessing Officer on this issue of allowability of legal and professional charges of Rs. 10 lakhs. The Hon'ble J....