Case Law Details
Virgo Aluminum Ltd. Vs PCIT (ITAT Chandigarh)
ITAT Chandigarh held that invocation of revisionary jurisdiction under section 263 of the Income Tax Act without satisfying twin conditions i.e. that the order of the AO must be erroneous and prejudicial to the interest of revenue is unsustainable in law.
Facts-
The assessee is engaged in the manufacturing of aluminium rolled products, such as aluminium sheets. The assessee had e-filed its return of total income of Rs.11,21,66,380/-. Subsequently, the return of income was revised by the assessee claiming deduction u/s 80IC amounting to Rs.3,24,45,802/-.
PCIT on scrutinizing the assessment record, observed that AO had accepted the assessee’s claim of deduction u/s. 80IC without the audit report having been filed in time, and the claim of write off of Rs.1,66,70,246 without conducting any enquiries whatsoever. The order passed u/s. 143(3) of the Income Tax Act, therefore, appeared to be erroneous, and thus prejudicial to the interest to the revenue.
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