Wrong Section Used to Deny Depreciation Set-Off; Section 263 Order Quashed

Delta Manufacturing Limited Vs PCIT (ITAT Mumbai) Section 263 Order Quashed as PCIT Invoked Wrong Section to Deny Set-Off of Unabsorbed Depreciation: ITAT Mumbai In a significant ruling, the Mumbai ITAT quashed a revision order passed under section 263, holding that the very foundation of the PCIT’s action was legally unsustainable. The assessee had received ₹15.56 crore from its wholly owned foreign subsidiary, Rhine Estates Limited (England), on reduction of share capital and treated the amount as deemed dividend under section 2(22)(d). The assessee set off the income against brought-for...