The Tax Publishers2020 TaxPub(DT) 0859 (Mum-Trib)

INCOME TAX ACT, 1961

Section 263

AO 'during assessment proceedings' had examined assessee's entitlement towards claim of depreciation on 'goodwill', and only after necessary deliberations finding the same to be in order accepted the same, therefore, Pr. CIT, was divested of his jurisdiction under section 263 for seeking dislodging of aforesaid possible, or in fact a balanced and a reasonable view taken by AO.

Revision under section 263 - Erroneous and prejudicial order - No lack of enquiry on AO's part as alleged by Pr. CIT -

Pr. CIT held assessment order as erroneous and prejudicial to the interest of revenue on the ground that AO failed to make any enquiry as regards entitlement of assessee towards claim of depreciation on 'goodwill' as per 'Proviso 5' of section 32(1).Held: AO during assessment proceedings had examined assessee's entitlement towards claim of depreciation on 'goodwill', and only after necessary deliberations finding the same to be in order accepted the same, therefore, Pr. CIT, was divested of his jurisdiction under section 263 for seeking dislodging of aforesaid possible, or in fact a balanced and a reasonable view taken by AO.

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2014-15 & 2015-16

IN THE ITAT, MUMBAI BENCH

S. RIFAUR RAHMAN, A.M. & RAVISH SOOD, J.M.

Sprit Infrapower and Multiventures (P) Ltd. v. Pr. CIT

I.T.A. Nos. 3081 & 3082/Mum/2019

A.Ys. 2014-15 & 2015-16

11 December, 2019

Appellant by: V. Chandra Sekhar, Harshad Shah, A.Rs.

Respondent by: T. Kipgen, CIT, D.R.

ORDER

Ravish Sood, J.M.

The captioned appeals filed by the assessee company are directed against the respective orders passed under section 263 of the Income Tax Act, 1961 (for short 'Act') by the Principal Commissioner of Income Tax-8, Mumbai (for short ' Pr. CIT'), dated 30-3-2019 for assessment year 2014-15 and assessment year 2015-16. As a common issue is involved in the aforesaid appeals, therefore, the same are being taken up and disposed off by way of a consolidated order. We shall first advert to the appeal filed by the assessee for assessment year 2014-15. The assessee has assailed the impugned order on the following grounds of appeal before us :--

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