2025 (6) TMI 1947

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.... Sri.Harikrishnanunny, CA For The Respondent : Sri.Sanjit Kumar Das, CIT-DR ORDER PER INTURI RAMA RAO, AM : This appeal filed by the assessee is directed against the order of the National Faceless Assessment Centre / Commissioner of Income-tax (Appeals) ["the CIT(A)"] dated 30.11.2023 passed u/s.143(3) r.w.s. 263 of the Income-tax Act, 1961 ("the Act") for the assessment year 2017-2018....

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....with him u/s.263 of the Act passed an order of revision setting aside the assessment order for the failure of the AO to examine the applicability or otherwise of the provisions of sec.40(a)(iib) of the Act in respect of guarantee commission paid to State Government of Kerala. Pursuant to the order of the revision passed by the PCIT, the AO passed the assessment order u/s.143(3) r.w.s. 263 of the A....

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....s that the issue is no longer res integra, as it stood covered against the appellant company. 7. We heard the rival submissions and perused the material available on record. The issue in the present case relates to the allowability of bank guarantee commission paid to the State Government of Kerala. It is an undisputed fact that the appellant is a wholly owned undertaking of State Government of....

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....Government of Kerala of Rs. 44,93,86,518. 8. On a careful perusal of the order passed u/s.263 of the Act, it would be clear that the learned PCIT gave a specific direction to the AO to disallow the guarantee commission paid to the State Government of Kerala. The issue was not open before the Assessing Officer, to decide the allowability or otherwise of the expenditure, the order of the learned ....