Trivitron Healthcare P Ltd. Vs PCIT (ITAT Chennai)
ITAT Chennai held that PCIT cannot term order passed by AO as erroneous and prejudicial to the interest of revenue merely for non-production of Form 3CL for claiming weighted deduction under section 35(2AB) of the Income Tax Act. Thus, revisionary proceedings u/s. 263 unjustified.
Facts- The only issue in the appeal of assessee is as against the revision order passed by the PCIT u/s.263 of the Act that he failed to satisfy the twin conditions i.e., for order passes by the AO u/s.143(3) of the Act, is erroneous insofar as prejudicial to the interest of Revenue, which is sine qua non to invoke the powers u/s.263 of the Act.
Conclusion- Held that since, the assessee has already filed all the required details to claim the weighted deduction u/s.35(2AB) of the Act, and the same has not been disputed by the AO with regard to the fact of the said expenditure, merely for the reason of certificate in Form 3CL has not been provided by the prescribed authority to the income tax authorities, (which is in the control of the assessee), the PCIT cannot term the decision of the AO as erroneous in so far as prejudicial to the interest of Revenue. Thus, we cannot countenance action of the PCIT in exercising the powers u/s.263 of the Act for revising the assessment on this issue.
