PCIT’s 263 Revision Quashed – AO’s Enquiry on Goodwill, Warranty & CSR Found Proper

GMM Pfaudler Ltd. Vs. PCIT (ITAT Ahmedabad) PCIT  invoked section 263, holding that the assessment order passed u/s 143(3) r.w.s. 144B was erroneous & prejudicial to Revenue, since AO had not made proper enquiry on: (1) Depreciation on goodwill (₹1.48 crore) acquired on slump sale, (2) Provision for warranty (₹48.50 lakh), & (3) Deduction u/s 80G (₹62.17 lakh) on CSR donations. PCIT held that goodwill was ineligible for depreciation after amendment to section 32, warranty provision was not tested per Rotork Controls (SC), & CSR donations could not qualify u/s 80G in view of ...