9911796707
TMI Blog2023 (4) TMI 629X X X X Extracts X X X X X X X X Extracts X X X X ..... reply of the assessee is not in accordance with law, then only it will be reflected in the assessment order describing; what was the proposal, what was the reply and as to how the reply of the assessee was found not in accordance with law. Naturally, when the AO considered the reply of the assessee was in accordance with law, he has described in the final assessment order and just because the AO has not elaborately discussed the addition proposed in the draft assessment order, reply of the assessee, whether the reply is in accordance with law, etc. the final assessment order cannot be held that as erroneous and prejudicial to the interest of the Revenue. Under the above facts and circumstances of the case, we are of the opinion that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... crores. But, the assessee has not charged/earned any interest on advances given to the group companies. The assessee had given ₹.41,66,74,040/- as interest free advances to the companies (i) Anamalais Bus Transport P Ltd ₹.41,66,39,600/- (ii) ABT (Madurai) P. Ltd. ₹. 3,44,405/-. The assessee had claimed that interest free advance among the group companies is book entry only and the same has been made out of interest free fund. It is seen that the assessee had not established through documentary evidence that the advances were made out of interest free fund or own fund. Hence, proportionate interest at 22% is to be disallowed and added back to the income returned for the assessment year 2018-19 i.e., ₹. 9,58,35,029/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In this regard, it is submitted that the interest bearing funds obtained during the AY 2017-18 was neither diverted to M/s Anamalais Bus Transport P Ltd nor to M/s ABT (Madurai) P Ltd and the above amount of Rs. 41,66,39,600/- shown as receivable in the balance sheet emanates from a standalone transac6on of share transfer and it was merely book entry thereby negating the presumption of diversion of the interest bearing funds. In this regard, the assessee places on record the ledger account of M/s Annamalai Bus Transport P Ltd in the books of the assessee and the ledger account of the assessee in the books of the said party along with confirmation to fortify the above stand. Similarly, the transaction with M/s ABT (Madurai) P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the diversion of the interest free funds or own funds while however, the stand taken the Assessee in the original scrutiny assessment was completely different inasmuch as the amount reflecting against M/s Anamalais Bus Transport P Ltd Rs.41,66,39,600/- was only a book entry without any actual flow of cash. In such circumstances, the very reason for assuming jurisdiction u/s 263 of the Act falls to the ground and hence it is pleaded that the proposal to revise the scrutiny assessment order dated 14.07.2021 for the assessment year 2018-19 on the single issue incorporated in the captioned show cause notice may be dropped in the interest of justice. Dated at Coimbatore, this the 30th day of September, 2022. 3.1 By submitting t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the assessee has submitted that during the course of assessment proceedings, the Assessing Officer has very well proposed a draft assessment order incorporated the issue of interest payment and the ld. PCIT has also agreed that the issue of interest payment was part of the scrutiny assessment proceedings. Against the draft assessment order, the assessee filed its detailed reply and after examining the details and by accepting the same, the Assessing Officer completed the assessment under section 143(3) r.w.s. 144B of the Act. 4.1 It was further submission that just because the issue has not been discussed in the assessment order by the Assessing Officer, it cannot be held that the impugned assessment order is erroneous and prejudici ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inst the additions proposed in the draft assessment order, after examining the details furnished by the assessee and by accepting the same, the Assessing Officer dropped the additions proposed in the draft assessment order while concluding the final assessment order. Just because, the Assessing Officer has not discussed in the final assessment order about the additions proposed in the draft assessment order, acceptance of the reply of the assessee, etc., it cannot be presumed that the assessment order is erroneous and prejudicial to the interest of the Revenue. 6.2 In case, if the final assessment order did not speak anything about the issue of show cause notice or proposing draft assessment order, etc., then, it can be presumed that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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