TaxTMI 
TaxTMI 
2025 (10) TMI 1232
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....t the order of the Hon'ble ITAT, Rajkot in ITA No. 176/RJT/2022 dated 29.01.2024 is pending with Hon'ble High Court of Gujarat. 2. It is therefore prayed that the order of the Ld.CIT(A) be set aside and that of the AO be restored to the above extent. 3. The findings of the AO and the addition made by the AO may be upheld in toto. 4. The Ld. CIT(A) has erred in law and on facts in deleting the addition in respect of disallowance u/s. 80P(2)(d) of the Act 5 amounting to Rs. 5,60,55,842/-, as the order passed by the Pr. CIT u/s. 263 of the Act was quashed by the Hon'ble ITAT without going into the merits of the case. 5. The Ld. CIT(A) has erred in law and on facts in not considering the fact that the interest income earned by the assessee from the Co-operative Bank is not includible for deduction u/s. 80P of the Act. 3. Learned D.R. for the Revenue, at the outset, informs the Bench that the Revenue does not wish to press ground no.1 raised by it, along with the Form No. 36, therefore, we dismiss ground no. 1 raised by the Revenue, as not pressed. 4. In respect of other grounds raised by the Revenue, the Ld. D.R. for the Revenue, ar....
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....he same assessment year 2017-18, in assessee's own case vide 174 taxmann.com 868 (Guj.), wherein it was held as follows: "7. An inquiry made by the Assessing Officer, considered inadequate by the Commissioner of Income Tax, cannot make the order of the Assessing Officer erroneous. In view, the order can be erroneous if the Assessing Officer fails to apply the law rightly on the facts of the case. As far as adequacy of inquiry is considered, there is no law which provides the extent of inquiries to be made by the Assessing Officer. It is Assessing Officer's prerogative to make inquiry to the extent he feels proper. The Commissioner of Income Tax by invoking revisionary powers under Section 263 of the Act cannot impose his own understanding of the extent of inquiry. There were a number of judgements by various High Courts in this regards. 8. Delhi High Court in the case of CIT v. Sunbeam Auto [2010] 189 Taxman 436/[2011] 332 ITR 167 (Delhi), made a distinction between lack of inquiry and inadequate inquiry. The Hon'ble court held that where the AO has prior to the completion of assessment, the same cannot be set aside u/s263 on the ground of inadequate inqui....
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.... been imposed or that by the application of the relevant statute on an incorrect or incomplete interpretation a lesser tax than what was just been imposed. 15. Thus even the Commissioner conceded the position that the Assessing Officer made the inquiries, elicited replies and thereafter passed the Assessment order. The grievance of the Commissioner was that the Assessing Officer should have made further inquires rather than accepting the explanation. Therefore, it cannot be said that it is a case of 'lack of inquiry'. 9. "In Gabriel India Ltd. 71 Taxman 585/203 ITR 108 (Bombay), law on this Aspect was discussed in the following manner (page 1 13):- "The consideration of the Commissioner as to whether an order is erroneous in so far as it is prejudicial to the interests of the Revenue, must be based on materials on the record of the proceedings called for by him. If there are no materials on record on the basis of which it can be said that the Commissioner acting in a reasonable could have to such a conclusion, the initiation of proceedings by him will be illegal and without jurisdiction. The Commissioner cannot initiate proceedings with a view to ....
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....here assessee company had received unsecured loans from two different companies and Assessing Officer had made inquires in detail and accepted genuineness of same, such view of Assessing Officer being a plausible view could not be considered erroneous or prejudicial to interest of revenue. The facts of this case were that respondent assessee has filed its return of income showing total income of Rs. 62,55,900/- which was assessed under Section 143(3) of the Act, 1961 by an assessment order dated 14th March 2016. The respondent company received unsecured loans from M/S. Georgett Tradecom Pvt. Ltd and M/S. Purba Agro Food Pvt. Ltd amounting to Rs. 2.49 Crore and the Assessing Officer allowed these unsecured loans. The Principal Commissioner of Income-tax invoked. Section 263 of the Act, 1961 for revising the assessed income of the respondent assessee. It was noticed by the PCIT that the unsecured loans obtained by the respondent assessee are shown as investment in the name of the assessee in the share application as well as in the balance sheet of the respective companies. The PCIT passed an order under Section 263 of the Act directing the Assessing Officer to pass fresh assessment o....
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....nquiries which includes assessee's on-money transactions. It was on account of these findings that the Tribunal was prompted to reverse the order of revision. No question of law arises. Tax Appeal is dismissed" 13. In our considered view, this is not a fit case for invocation of ns of Section 263 of the Act. This is for the reason that firstly, we that the assessing officer had examined the issue in detail during course of assessment proceedings, and it is not a case where there was any apparent lack of enquiry on this aspect by the assessing officer. Secondly, the assessing officer had taken a view which is a legally plausible view and it is a well settled law that 263 proceedings cannot be resorted to by the PCIT only with the view to supplant his own view with the view taken by the assessing officer. Further, the decision of KatlaryKariana Supra was on the aspect of reopening of assessment under Section 147 of the Act and not directly on the issue of claim of reduction under Section 80P of the Act. Therefore, once it is seen from the records that the assessing officer had made due enquiries during the course of assessment proceedings on this aspect and had taken a v....