9911796707
TMI Blog2011 (5) TMI 581X X X X Extracts X X X X X X X X Extracts X X X X ..... ing discussion - assessment order in the given case cannot be revised on the basis of the grounds stated above and which do not make the assessment order erroneous and also prejudicial to the interests of the Revenue - Appeal is allowed X X X X Extracts X X X X X X X X Extracts X X X X ..... ut causing any meaningful and relevant enquiries as warranted by the facts and circumstances of the case. (iv) The Assessing Officer has allowed expenditure incurred for purchase of software without calling for any details and without examining what was the nature of the software, how it was to be used and how it is revenue expenditure. (v) The assessee had treated Non-Performance Assets (NPAs) as bad debts. The rules framed by the RBI for NPAs and requirement of bad and doubtful debts as per Rule 6EA are not the samething. But the Assessing Officer did not bring to tax the income on accrual basis with regard to NPAs which are more tan 90 days old but are less than 180 days old. In the absence of any proof regarding the age of NPAs, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of its Government Securities. (iii) Loss on sale of Government securities has not been disallowed. (iv) Amortization expenses has not been disallowed. (v) Software expenditure, Entertainment expenditure and payment to SEBI had been allowed without proper enquiry. (vi) Interest on NPA has not been considered and added." 5. The ld.AR has submitted his arguments in respect of each and every point taken in this appeal for revising the assessment order. Before giving our finding, it would be proper to explain the scheme of revision. It is trite that an order can be revised only and only if twin conditions of 'error in the order' and 'prejudice caused to the Revenue' co-exist. 6. The subject of 'revision under section 263' has be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to the principle of audi alteram partem as envisaged in the Constitution of India as well in section 263. As order can be treated as 'erroneous' if it was passed in utter ignorance or in violation of any law; or passed without taking into consideration all the relevant facts or by taking into consideration irrelevant facts. The 'prejudice' that it contemplated under section 263 is the prejudice to the Income Tax administration as a whole. The revision has to be done for the purpose of setting right distortions and prejudices caused to the Revenue in the above context. The fundamental principles which emerge from the several cases regarding the powers of the CIT under section 263 may be summarized below: (i) The CIT must record satisfact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd arrives as a conclusion, such conclusion cannot be termed to be erroneous simply because the CIT does not feel satisfied with the conclusion. (viii) The CIT, before exercising his jurisdiction under section 263, must have material on record to arrive at a satisfaction. (ix) If the Assessing Officer has made enquiries during the course of assessment proceedings on the relevant issues and the assessee has given detailed explanation be a letter in writing and the Assessing Officer allowed the claim on being satisfied with the explanation of the assessee, the decision of the Assessing Officer cannot be held to be erroneous simply because in his order he does not make an elaborate discussion in that regard. 7. Now, reverting to the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earlier years, the Assessing Officer has allowed the expenditure which is evident from the document placed at page 29 of the paper book. Hence, the other expenses are also correctly allowed by the Assessing Officer and there is no error in the assessment order in so far as it is prejudicial to the interests of the Revenue. 12. Ground No.1(vi) regarding the issue of interest on NPA which has not been considered and added. Section 45D itself is clear on this subject because in case of financial companies, interest has to be charged on receipt basis. Therefore, all points which have been made the basis for revising and coming to the conclusion that the order is erroneous in so far as it is prejudicial to the interests of Revenue, cannot surv ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
