Ten Construction (India) Private Limited Vs PCIT (ITAT Mumbai)
ITAT Mumbai held that invocation of revisionary proceeding u/s. 263 justified as AO was fully ignorant about verification of unsecure loan and addition of 10% unsecured loan by AO was baseless hence assessment order turned out to be erroneous and prejudicial to the interest of revenue.
Facts- The assessment was completed u/s. 143(3) with the addition under different heads. Thereafter, PCIT issued the notice u/s. 263 for verification of unsecured loans amount to Rs.15,49,26,364/-. By assuming the charge of revision, 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 proceedings, AO only disallowed 10% of the unsecured loan of Rs.15,49,26,364/- which works out to R.1,54,92,636/- and the balance amount was unverified, amount to Rs.13,94,33,728/-. PCIT also mentioned that assessee has not filed relevant documents in relation to the verification of unsecured loan. The assessee made the reply to PCIT filing all the relevant documents in pursuing notice U/s 263 of the Act. Finally, PCIT, by assuming charge of revision, held the impugned assessment order as erroneous and prejudicial to the interest of the revenue and set aside the same for further verification and framing the assessment afresh. Being aggrieved on the revisionary order, the assessee filed an appeal before us.
