Godrej Agrovet Limited Vs PCIT (ITAT Mumbai)
ITAT Mumbai held that revisionary order passed u/s. 263 of the Income Tax Act cannot be sustained to the extent AO duly examined the issue during scrutiny assessment proceedings and plausible view taken after proper application of mind.
Facts- The assessee is engaged in the business of manufacturing of agricultural products, animal feeds, integrated portal business, crude palm oil, and trading of agricultural products. The assessee has filed the present appeal against the impugned order dated 29/02/2024, passed under section 263 of the Income Tax Act, 1961 by the Principal Commissioner of Income Tax, Mumbai.
Conclusion- Held that once the AO after considering the submissions filed by the assessee has allowed the claim of depreciation, it cannot be said that the assessment order was passed without proper enquiry and application of mind rendering the same to be erroneous insofar as it is prejudicial to the interest of the Revenue. Therefore, we are of the considered view that this issue was duly examined by the AO during the scrutiny assessment proceedings. Thus, the impugned revision order passed under section 263 of the Act on this issue is set aside. Thus, the impugned order passed by the learned PCIT under section 263 of the Act is sustained partially. As a result, grounds raised by the assessee are partly allowed.
