Revision u/s 263 - As per CIT, AO has not examined the issue of ...

Tribunal Overrules Tax Revision, Supports AO's View on Allowable Interest Expenditure in Business Loan Case.

April 19, 2024

Case Laws Income Tax AT

Revision u/s 263 - As per CIT, AO has not examined the issue of interest expenditure claimed against interest from third party - The Tribunal observed that the assessment order was not erroneous as the Assessing Officer had conducted a detailed inquiry and taken a plausible view. Additionally, the order was not prejudicial to the revenue's interest. Therefore, the Tribunal quashed the revisionary proceedings initiated under Section 263 of the Act. The Tribunal acknowledged the commercial expediency behind the utilization of funds for advancing loans to another entity. It concluded that the interest expenditure claimed was allowable, considering the circumstances and business nature of the assessee. - Consequently, the tribunal quashed the revisionary proceedings initiated u/s 263.

View Source

← Previous Next →

Revision u/s 263 - As per CIT, AO has not examined the issue of ...

Tribunal Overrules Tax Revision, Supports AO's View on Allowable Interest Expenditure in Business Loan Case.

April 19, 2024

Case Laws Income Tax AT

You may also like:

The case pertains to the revision of an assessment order u/s 263 regarding the applicability of the higher tax rate u/s 115BBE on unexplained expenditure u/s 69C. The...

Revision u/s 263 - since interest on late deposit of VAT, service tax, TDS etc are allowable expenditure u/s 37(1), the AO has taken a possible view - order passed by...

Income from other sources - Deduction of interest expenditure - direction of the CIT – A in restricting the deduction to the extent of income earned of term deposit -...

In the present case, the Assessing Officer (AO) disallowed the expenditure claimed u/s 57(iii) of the Income Tax Act on an ad-hoc basis. The AO did not challenge the...

Case involved revision u/s 263 by the Commissioner of Income Tax (CIT) setting aside assessment order regarding rent recovered from specified persons and treatment of...

Revision u/s 263 - expenditure on purchased CDs on Jain Religion - AO had carried out detailed enquiries and taken a plausible view and accepted the assessee's treatment...

Revision u/s 263 - Every loss of revenue as a consequence of an order of AO cannot be treated as prejudicial to the interests of the revenue, for example, when an...

Assessment of notional interest on loans - loan has been granted by the assessee to its sister concern - As per the provisions of Sec. 36(1)(iii) AO could have...

TP Adjustment - Disallowance of expenditure u/s 40(a)(ia) - any expenditure not for the purpose of business, the A.O. can certainly re-characterize the same as not...

Legality of revision of order of Tribunal u/s 254 on ground of retrospective overruling - Judicial decision acts retrospectively. Judges do not make law they only...

Interest liability - seeking waiver of interest since the payment of service tax was paid under the amnesty scheme - The tribunal observed that the appellant's payment...

Revision u/s 263 - AO had issued u/s. 142(1) and has enquired about the details of sale of flat and LTCG etc. by asking question - AO had enquired about the issue of...

Deduction of interest expenditure incurred on borrowed funds u/s 57 - Interest incurred on borrowed funds utilized for making investment in shares in company of...

ITAT affirmed weighted deduction eligibility u/s 35(2AB) for in-house scientific research expenditure. While R&D expenses incurred within India qualify for weighted...

Disallowance of various expenses on ad hoc basis - While scrutinizing the expenditure if the expenses claimed are not having any nexus to the business of the assessee or...

Quick Updates: