Case Law Details
Soma Enterprise Limited Vs PCIT (Central) (ITAT Mumbai)
ITAT Mumbai held that AO duly verified the TDS credit and assessee duly explained as to why certain receipts though subjected to TDS, would not be liable to be offered to tax such as mobilization advance. Ignoring the same and exercising the revisional jurisdiction u/s 263 in a mechanical and cavalier manner is unsustainable
Facts- Post search operations, AO specifically stated that the credit for TDS and pre-paid taxes need to be given after due verification of his assessment order. However, PCIT invoked jurisdiction u/s 263 seeking revision on the ground of mismatch of receipts as per 26AS with receipts as per profit and loss account and also mismatch of TDS credit as per 26AS and TDS claimed by the assessee.
Conclusion- We find that the assessee had duly explained as to why certain receipts though subjected to TDS, would not be liable to be offered to tax such as mobilization advance. This had been completely ignored by the ld. PCIT while exercising his revision jurisdiction u/s 263 of the Act. This goes to prove that the revision jurisdiction u/s 263 of the Act had been exercised by the ld. PCIT in a mechanical and cavalier manner for all the assessment years under consideration and hence they deserve to be quashed.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
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