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TMI Blog2024 (9) TMI 1378X X X X Extracts X X X X X X X X Extracts X X X X ..... on the order of Accumax Lab Devices Pvt Ltd. [ 2024 (7) TMI 494 - ITAT AHMEDABAD ] is distinguishable in fact. In impugned assessment there is no verification from the part of the ld. AO. AR took the plea that the issue is pending before the appellate authority. But the issue was challenged only the 10% of addition u/s 68 of the Act. The revisional order pertains to balance unsecure loan creditors - Here the AO was fully ignorant about the verification of unsecured loan creditors which caused the impugned assessment order as erroneous and prejudicial to the interest of the revenue. Mere submission of the documents will not serve the purpose of section 263. Assessee appeal dismissed. - Shri Anikesh Banerjee, Judicial Member And Shri Girish ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T. 2. On the fact and circumstances of the case and in law, Ld. Pr. CIT-6, Mumbai erred in passing order u/s 263 without application of mind or without making required enquiries/investigations himself as all documents as per GOA no.1 were filed during assessment proceedings and also before PCIT-6, Mumbai against show cause notice issued by him. 3. On the fact and circumstances of the case and in law, The appellant submits that the Principal Commissioner of Income-tax ought not to have invoked provisions of section 263 on the very same point on which the Assessing Officer had made inquiry and taken position. 4. On the fact and circumstances of the case and in law, The Principal Commissioner of Income-tax was not Justified assuming Jurisdicti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er erred in assuming jurisdiction particularly in the matter for which 263 proceedings were initiated was pending before the CIT(A) and that on the same issue, jurisdiction of the CIT(A) and the Principal Commissioner of Income-tax cannot co-exist. 3. The brief fact of the case is that the assessment was completed under section 143(3) with the addition under different heads. By invoking section 263 of the Act, the Ld.PCIT issued the notice under section 263 for verification of unsecured loans amount to Rs. 15,49,26,364/-. By assuming the charge of revision, the ld.PCIT issued the show cause notice for hearing and asked to explain that the unsecured loan received by the assessee was not duly verified by the Ld.AO. During the assessment proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee as per the provisions of Section 68 of the I.T. Act, 1961 for the year under consideration and charged to tax as per provisions of section 1158BE of the I.T. Act. 1961 @ 60% thereof. Along with penalty proceedings u/s 271AAC of the I.T. Act, 1961 are being initiated separately against the assessee for failing to furnish explanation regarding the cash deposits/credits which are being added back u/s 68 as deemed income of the assessee as above. 5. The Ld.AR relied on the assessment order and was unable to submit any such evidence which relates verification of the impugned unsecured loan. Only 10% of the unsecured loan amount to Rs. 1,54,92,636/- is added back to the total income of the assessee as per section 68 r.w.s. 115BBE of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication from the part of the ld. AO. The ld. AR took the plea that the issue is pending before the appellate authority. But the issue was challenged only the 10% of addition U/s 68 of the Act. The revisional order pertains to balance unsecure loan creditors amount to Rs. 13,94,33,728/-. Here the ld.AO was fully ignorant about the verification of unsecured loan creditors which caused the impugned assessment order as erroneous and prejudicial to the interest of the revenue. Mere submission of the documents will not serve the purpose of section 263, followed by Explanation-2 which is reproduced as below: - 263 [Explanation 2. For the purposes of this section, it is hereby declared that an order passed by the Assessing Officer [or the Transfer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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