2023 (11) TMI 287

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....year 2017-18. The substantial questions of law raised in this appeal are as under: "(i) Whether the Hon'ble Tribunal was justified in quashing the order u/s. 263 of the Income Tax Act of Ld. PCIT when Explanation 2 of Section 263 of the Act expressly provides that it is final opinion of the Ld. PCIT to deem an order prejudicial and erroneous to the interest of revenue? (ii) Whether the Hon'ble Tribunal was justified in quashing the order u/s. 263 of the Income Tax Act of Ld. PCIT's observation that the order passed by A.O, was erroneous and prejudicial to the interest of revenue as the A.O. has failed to bring to tax repayment of unsecured loans? (iii) Whether the Hon'ble Tribunal was justified in ....

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....T. The question before the Tribunal was therefore whether the omission to treat the expenditure as deemed income under Section 69C of the Act by the Assessing Officer which was taken in revision was just and proper. 3. The ITAT held as under: "5. We have heard the rival contentions and perused the material on record. We observe that the aforesaid issue on the basis of which proceedings u/s 263 of the Act proceedings were initiated, was duly examined by the Assessing Officer at the time of assessment and specific show cause notice was issued to the assessee with respect to this issue proposing to make addition u/s. 68 r.w.s. 115BBE of the Act. This issue was raised by the Assessing Officer vide show cause notice dated 10....

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....e above three parties, the receipts have already been taxed in the hands of the assessee u/s. 68 of the Act in the assessment for A.Y. 2013-14. The assessee had filed appeal against the aforesaid order and the appeal was finally closed under the Vivad Se Vishwas Scheme. Accordingly, once the unsecured loans have been taxed in the hands of the assessee at the time when they were received by the assessee in A.Y. 2013- 14, the same cannot be again taxed in the hands of the assessee at the time when such loans are repaid back by the assessee to such alleged bogus companies, since the same would amount to double taxation. Further, on perusal of the order passed by ld. PCIT, it is seen that the ld. PCIT has not established as to how the ....