2023 (8) TMI 1275

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....: 1. On the facts and in the circumstances of the case and in law the learned Principal Commissioner of Income Tax, PCIT, Mumbai-17 erred in invoking the provisions of Section 263 of the Income Tax Act, 1961 for the assessment order passed on 24.02.2021 u/s. 143(3) r.w.s. 143(3A) & 143(3B) of the Income Tax Act, 1961 by the Assessing Officer, Ne-AC, Delhi treating it erroneous and prejudicial to the revenue and set-aside the same, without appreciating the submission made, law, facts and circumstances of the case. 2. provisions of the Act ought to have been properly construed and regard being had to facts of the case no such revision order u/s. 263 of the Income Tax Act, 1961 should have been made. Reasons assigned by the l....

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....issued u/s 263 of the Act the assessee submitted has under: "i. The assessee is the owner of the proprietary concern M/s. Norac International which is engaged in trading of ferrous and non-ferrous metal mostly of import and supply in India. The assessee has provided the list of advances outstanding as on 31.03.2018 given to exporters amounting to Rs. 3.55 Cr. ii. The assessee has submitted that the immovable property was a residential premises purchased jointly for Rs. 2.16 Cr out of own capital of Rs. 24.95 lacs and loan of Rs. 1.91 Cr from ICIC Bank. Interest on said loan was debited to Capital A/c and not claimed as expenses in the Profit and loss A/c. iii. The assessee has submitted that the unsecured loans we....

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....btained as placed at page no. 66 of the paper book also stated loan was mainly utilized for import of goods. 7. On the other hand the Learned. Departmental Representative [hereinafter "the Ld. DR"] contended that neither the AO asked the assessee about utilization of the loan nor the assessee has given any supporting materials that loan was utilized for the purpose of import of goods. 8. Heard both the sides and perused the material on record. Without retreating the fact as elaborated (supra) in this order, the Ld. PCIT has stated that at para 5.1 in the order passed u/s 263 of the Act that the assessee has not provided complete details of the unsecured loans along with its corresponding utilization for the business purpose. In this r....