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2016 (4) TMI 732 - ITAT KOLKATARevision u/s 263 - uninquired unsecured loans - Held that:- No hesitation in holding that the case under consideration is a glaring example of not making a relevant enquiry which amounts to no enquiry and is a case of non-application of mind by the AO. We therefore uphold the order of the CIT u/s.263 of the Act, in so far as it concerns direction to the AO to investigate regarding the unsecured loans appearing in the balance sheet of the Assessee. Receipt of advances from customers by the Assessee and the complaint of the CIT in the order u/s.263 of the Act that the AO ought to have made investigation into such unusual practice which was not prevalent in the concerned trade, we are of the view that even in respect of these advances received against future supplies, proper enquiries ought to have been made by the AO before completing the Assessment because there were several suspicious circumstances which warranted a probe by the AO. Admittedly no such probe has been made by the AO. The reasons given for upholding exercise of jurisdiction u/s.263 of the Act, in respect of unsecured loans received during the previous year would equally apply to these advances also. Thus we uphold the order u/s.263 of the Act - Decided against assessee
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