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2017 (8) TMI 1188 - ITAT MUMBAIRevision u/s 263 - taking loan on interest and giving interest free loans - CIT observed that, AO made inadequate inquiries - assessment order passed by the AO is brief and cryptic - Held that:- On verification of the details filed by the assessee, we find that the AO has posed a specific question for loans and advances and also purchases made by the assessee and outstanding sundry creditors shown as at the end of the financial year. The assessee has filed all the details explaining the loan given to others as per which the loans given in the normal course of business without any condition as to charging interest. Insofar as the purchases and sundry creditors, the assessee has filed a list of sundry creditors having outstanding balance of more than ₹ 1 lakh with names and addresses and also PAN. The assessee also filed confirmation letters from the sundry creditors. The AO, after satisfying with the details filed by the assessee has accepted the explanation with regard to those two issues. Therefore, we are of the view that the CIT was incorrect in observing that the AO has not conducted necessary enquiries on the issues on which he wants further verification. No doubt, the assessment order passed by the AO is brief and cryptic which does not show any light on the verification of two issues, but the facts remain that the AO has cast necessary enquiries and the assessee has furnished necessary details which fact is not disputed by the CIT. The CIT’s only point is that enquiries conducted by the AO are inadequate. No doubt, in the opinion of the CIT, the AO ought to have conducted further enquiries. But that itself is not a ground for revision of assessment order u/s 263 because once the issues on which the CIT wants further verification was already examined by the AO, then there is no scope for the CIT to conduct further enquiries by holding that the enquiries conducted by the AO are inadequate. - Decided in favour of assessee.
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