INCOME TAX ACT, 1961

Section 263

Revision under section 263 - Erroneous and prejudicial order - AO took plausible view after due examination in view of judicial precedents -

Pr. CIT exercised revisionary power under section 263 and set aside assessment order as erroneous and prejudicial to the interest of revenue. The assessee has taken and AO also confirmed the fact that the outstanding of FD/OD facility were available against FD and net income was offered for taxation without claiming deduction 80IA. Whereas, Pr. CIT has taken gross receipt of income in place of net receipt of income and thereby, restricted deduction claimed under section 80IA in place of entire/actual deduction claimed under section 80IA by the assessee. Held: As evident, AO had examined the issue of deduction claimed under section 80IA for power unit of assessee company and after examining the documents and explanations submitted before him, AO had taken one of the plausible view of netting up of interest expenses with interest income in view of the Supreme Court judgment in ACG Associated Capsules Pvt. Ltd. (2012 (2) TMI 101. Therefore, under these circumstances order of could not be termed as erroneous and prejudicial.

Supported:ACG Associated Capsules Pvt. Ltd. (2012 (2) TMI 101(SC)

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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