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TMI Blog2015 (2) TMI 276X X X X Extracts X X X X X X X X Extracts X X X X ..... ting to the genuineness of the loan and then decide the issue in accordance with law after giving due and effective proper opportunity of hearing to the assessee. - Decided partly in favour of assessee for the statistical purposes. - ITA No. 8749/Mum/2010 - - - Dated:- 19-12-2014 - Shri D. Karunakar Rao And Shri Amit Shukla,JJ. For the Petitioner : Shri S.R. Wadhwa S.K. Mutsaddi For the Respondent : Shri Ajit Kumar Srivastava ORDER Per Amit Shukla, JM: This appeal has been preferred by the Assessee against order dated 01.11.2010, passed by the Ld. Commissioner of Income Tax-8,(CIT) Mumbai, u/s 263 cancelling the order passed by the AO u/s 154 dated 27.04.2009 on following grounds of appeal:- The Ld.CIT erred both on facts and in law in revising the order dated 27.04.2009 passed u/s 154 of the Income Tax Act, which was neither erroneous nor prejudicial to the interest of revenue. The order dated 27.04.2009 passed u/s 154 of the ITA by the Assessing Officer, rectified the assessment order dated 24.12.2008 passed by him u/s 143(3) of the ITA. In restoring the assessment order dated 24.12.2008 passed u/s 143(3) of the ITA, the Ld.CIT both on facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder mentioning no evidence was filed, the assessee filed a rectification application u/s 154, before the AO are read as under: Our client has received assessment order for A.Y. 2006-07 along with notice of demand of ₹ 13,65,494/- u/s 143(3). In this regard we have to submit that in your order you have stated that no loan confirmation was filed. We had already filed loan confirmation letter attached to our confirming letter dated 30.06.2008 duly acknowledged by you on dated 17.07.2008 copy of which we are enclosing herewith for your kind reference along with copy of loan confirmation letter. Regarding the source of Fund of the loan to Bodisatya Pvt. Ltd., we have already submitted the details through our letter dated 17.11.2008, which may be verified from your records. Again we are submitting the loan confirmation letter of Machhapuchchhre Bank Ltd, Nepal. It is further submitted that while completing the assessment if any addition is made it is added to the income from Business and profession. But, additions in respect of cash credit were wrongly taken under the head income from other sources instead of addition to income from Business, shown as per the return. Whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dences on record. However, the Ld.CIT held that such an order passed u/s 154, deleting the addition is not correct in law as it amounts to review and therefore such an order passed by the AO is erroneous and prejudicial to the interest of the revenue. The conclusion of the Ld.CIT is as under:- Thus, in the impugned order u/s 154 of the Act dated 27.04.2009, the AO has reviewed the assessment order passed by him u/s 143(3) of the Act dated 22.04.2008 in so much that the addition of ₹ 39,00,000/- u/s 68, made by him after considering the confirmation letter furnished by the assessee, was deleted by him on the basis of the same confirmation letter. U/s 154 of the Act, only a mistake apparent form records can be rectified. No power is conferred therein to review a finding based on detailed appreciation of facts and law. Hence the order u/s 154 of the Act dated 27.04.2009 passed by the AO being erroneous and prejudicial to the interest of the revenue is set aside. Consequently, the original assessment order dated 24.12.2008 is hereby restored. 5. Before us, the learned counsel submitted that, during the course of the original assessment proceedings, the assessee had furnis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the loan taken form the director of the assessee company, Mr. K.N. Rana. These evidences include confirmation letters, loan certificate from the bank in Nepal from where Mr. Rana had taken the loan, bank statement of standard chartered bank, copy of account of Mr. Rana etc. Not only that, how the said amount has been remitted to bank in India and then received by the assessee company. Entire nexus of the transaction along with the documentary evidences where placed on record. Despite that evidences the AO added the addition on the ground that there is no documentary evidences. There is not a whisper about the documentary evidences filed by the assessee. Once this was pointed out to the AO under rectification petition u/s 154, the AO took cognizance of such material placed on record and came to the conclusion that the assessee has proved the genuineness of the loan, hence, the said addition was reduced from the income of the assessee. Further before the Ld.CIT during the course of revisionary proceedings also, the assessee has adduced further evidence to prove the genuineness of the loan. However, the Ld.CIT merely on technical ground that such a rectification cannot be carried out ..... X X X X Extracts X X X X X X X X Extracts X X X X
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