SAMEER KHAN`,VISAKHAPATNAM vs. THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1(1), VISAKHAPATNAM

This appeal filed by the assessee against the order of the Ld. Pr. CIT, Visakhapatnam-1 vide DIN & Letter No.ITBA/COM/F/17/2020/1032080706(1), dated 31/3/2021 for the AY 2015-16.

Subsequently, the Ld. Pr. CIT, Visakhapatnam-1, under the powers vested in him as per the provisions of section 263 of the Act noticed that the assessee received loan of Rs. 61 lakhs from 11 unsecured loan creditors and repaid the same during the year under consideration. The Ld. Pr. CIT issued a show cause notice on 23/10/2018 to the assessee. In response to the above show cause notice the assessee filed details of bank account extract of the creditors and the IT returns filed by the creditors to prove the 3 genuineness of the transactions. The Ld. Pr. CIT relying on the decision of the Hon’ble Supreme Court in the case of Malabar Industrial Co. Ltd vs. CIT [2000] 109 taxman 66 (SC) and also relying on the decisions of various High Courts found that the assessment order passed U/s. 143(3) prima facie erroneous and prejudicial to the interest of the Revenue and therefore proposed to revise the same U/s. 263 of the Act. The Ld. Pr. CIT after carefully considering the submissions made by the assessee with respect to loan creditors set-aside the file to the Ld. AO for the limited purpose of verification of the creditworthiness of the creditors afresh. The Ld. Pr. CIT directed the Ld. AO to obtain necessary evidences and to afford a reasonable opportunity to the assessee of being heard before passing a consequential order. Aggrieved by the order of the Ld. Pr. CIT, assessee is in appeal before us.

Before us at the time of hearing none appeared on behalf of the assessee to represent his case. The Ld. DR supported the order of the Ld. Pr. CIT.

We have heard the Ld. DR and carefully perused the material on record and the orders of the authorities below. Admitted facts 4 are that the assessee has taken a loan from various creditors amounting to Rs. 61 lakhs as detailed in page 2 and 3 of the order U/s. 263 of the Act. The assessee has submitted the written submissions and relied on the decisions of various Benches of the Hon’ble Tribunal and Hon’ble High Courts as detailed in written submissions.

We have gone through the records and written submissions of the assessee. We find that there is no specific mentioning about the submissions made by the assessee in the order of the Assessing Officer. In view of the above invoking the powers under section 263 of the Act by the Ld. Pr. CIT is valid in law and therefore, we hereby confirm the order of the Ld. Pr. CIT.

In the result, appeal of the assessee is dismissed. Pronounced in the open Court on the 07th April, 2022. Sd/- Sd/- (दुव्िूरु आर.एऱ रेड्डी) (एस बाऱाकृष्णन) (DUVVURU RL REDDY) (S.BALAKRISHNAN) न्याययकसदस्य/JUDICIAL MEMBER ऱेखा सदस्य/ACCOUNTANT MEMBER Dated : 07.04.2022 OKK - SPS 5 आदेश की प्रतिलिपि अग्रेपिि/Copy of the order forwarded to:-