No Error, No Prejudice – AO’s ICDS Verification Upheld- ITAT Quashes 263 Action

Techno Electric & Engineering company Limited Vs PCIT (ITAT Kolkata) Assessee, engaged in power & EPC business, filed return declaring ₹181.54 cr. AO completed scrutiny u/s 143(3) after verifying ICDS adjustments. PCIT invoked section 263 alleging that ₹91.97 lakh debited as anticipated loss on EPC contracts was wrongly allowed & that the assessment was erroneous & prejudicial to Revenue. Assessee explained that anticipated losses were consistently adjusted in prior years & the net impact for AY 2020-21 actually increased taxable income by ₹91.97 lakh. ICDS compliance...