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 la

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