Raghav Bahl Vs DCIT (ITAT Delhi)
ITAT Delhi held that claim of interest u/s. 24b of the Income Tax Act was duly examined during original as well as reassessment proceedings. Thus, the plausible view having been taken by the AO cannot be held to be prejudicial to the interests of Revenue. Accordingly, revisionary order passed u/s. 263 quashed.
Facts- PCIT upon verification of the order passed u/s 153A/143(3) of the Act that the said assessment was erroneous in so far as it was prejudicial to the interest of the revenue in as much as necessary enquiries or verification to verify the genuineness and correctness of the claims of the assessee was not made by the Assessing Officer. PCIT concluded that claim of interest under section 24B of the Income Tax Act was erroneous.
Conclusion- Held that it is the continuing cause of action and once the interest has been allowed by the AO initially in A.Y. 2012-13 the same cannot be disturbed subsequently without finding of any different fact which has already been narrated by us hereinbefore against the assessee. Thus, taking into consideration the entire aspect of the matter we find that the order impugned is nothing but the non application of mind having regard to the order passed by the Ld. AO in the reassessment proceedings under Section 153A of the Act accepting the claim of interest income under Section 24B of the Act upon examination of the issue after verification of the details filed by the Assessee.
