2021 (7) TMI 1100

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....in setting aside the assessment order by invoking provision of section 263, and directing the ld.AO to make a fresh assessment order and proposing an addition of Rs. 2,68,76,432/- on account of interest paid to loan creditors. 3. Facts in nutshell are that the assessee is a manufacturer of various types of engineering goods. It has filed return of income declaring total loss at (-)Rs. 48,79,66,620/- on 27.9.2013. Thereafter, case of the assessee was selected for scrutiny assessment by issuance notice under section 143(2) of the Act. During the scrutiny assessment, it was noticed by the AO that assessee has received unsecured loans from companies from Kolkata, Mumbai, Thane, Surat and Kerala etc. for Rs. 49,93,00,000/-. The assessee wa....

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.... frame assessment afresh after proper enquiries/ verification. Dissatisfied with order of the ld.CIT, the assessee is now before the Tribunal. 4. Before us, the ld.counsel for the assessee reiterated submissions, as were made before the Revenue authorities. He submitted that before the ld.AO, the assessee has pleaded that the company has paid interest on the deposits and TDS on such deposits has been paid with tax authority. He further submitted that all the materials were placed before the AO while framing the assessment, and after careful examination of the same, the ld.AO passed a reasoned assessment order, and therefore no room for the ld.CIT to exercise his power under section 263 and direct the AO to revise the assessment order ....

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....ng Officer conferred on, or assigned to, him under the orders or directions issued by the Board or by the Chief Commissioner or Director General or Commissioner authorized by the Board in this behalf under section 120; (b) "record shall include and shall be deemed always to have included all records relating to any proceeding under this Act available at the time of examination by the Commissioner; (c) where any order referred to in this sub-section and passed by the Assessing Officer had been the subject matter of any appeal filed on or before or after the 1st day of June, 1988, the powers of the Commissioner under this sub-section shall extend and shall be deemed always to have extended to such matters as had not been con....

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....endency of those proceedings. On an analysis of the record and of the order passed by the Assessing Officer, he formed an opinion that such an order is erroneous in so far as it is prejudicial to the interests of the Revenue. By this stage the learned Commissioner was not required the assistance of the assessee. Thereafter the third stage would come. The learned Commissioner would issue a show cause notice pointing out the reasons for the formation of his belief that action u/s 263 is required on a particular order of the Assessing Officer. At this stage the opportunity to the assessee would be given. The learned Commissioner has to conduct an inquiry as he may deem fit. After hearing the assessee, he will pass the order. This is the 4th co....