Case Law Details
Gujarat Narmada Valley Fertilizers & Chemicals Ltd Vs PCIT (ITAT Surat)
ITAT Surat held that AO already examined the issue and took a plausible view that addition should not be made. Accordingly, revisional jurisdiction u/s 263 unsustainable as order passed by AO is neither erroneous nor prejudicial to the interest of revenue.
Facts- The assessee had filed ROI declaring total loss of Rs.45,56,60,463/-, before allowing deduction under Chapter VIA of the Act which is the claim of deduction u/s.80IA amounting to Rs.72,65,30,991/- but restricted to the extent of total income. The returned income is shown at NIL. The assessee’s case was selected for scrutiny under CASS. The assessment u/s. 143(3) r.w.s 144C of the Act was completed determining total income at Rs.37,01,60,860/-, and calculated adjusted book profit u/s. 115JB at Rs.4,19,55,49,819/-.
On examination of assessment records, it was found by PCIT that the assessment order u/s. 143(3) r.w.s 144C of the Act is both erroneous and prejudicial to the interest of revenue. Accordingly, a show cause notice u/s. 263 of the Act was issued. PCIT rejected the arguments of the assessee and observed that the contentions raised by the assessee necessitate re-verification of the matter in its entirety by AO. Hence, the issue under consideration was restored by PCIT to the file of the AO for fresh adjudication at his end.
Aggrieved by the order of the PCIT, the assessee has preferred the present appeal.
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