Revision proceeding u/s. 263 quashed as AO has taken plausible view

Ocean Sparkle Limited Vs DCIT (ITAT Hyderabad)

ITAT Hyderabad held that invocation of revisionary jurisdiction under section 263 of the Income Tax Act unsustainable since AO has taken plausible view. Accordingly, assessment order is neither erroneous nor prejudicial hence revision order quashed.

Facts- The assessee company viz., M/s. Ocean Sparkle Limited, is involved in towage, berthing and un-berthing of ships, tug operations, comprehensive port management services and related services. Post completion of complete scrutiny, the case was taken up for revision proceedings by PCIT under section 263 of the Income Tax Act. Being aggrieved by the revision proceedings, the present appeal has been filed by the assessee.

Conclusion- Held that once a view is taken by the A.O. on the issue and further, the said view is one of the plausible views, then there is no scope for the learned PCIT to invoke jurisdiction u/s 263 of the Act on different opinion unless the view taken by the A.O. is unsustainable in law.

Held that, the assessment order passed by the A.O. is neither erroneous nor prejudicial to the interests of revenue. The learned PCIT without appreciating relevant facts, simply set aside the assessment order passed by the A.O. Thus, we quashed the revision order passed by the learned PCIT u/s 263 of the Act, and restore the assessment order passed by the A.O. u/s 143(3) r.w.s. 144B of the Income Tax Act, 1961, dated 22.09.2022. In the result, the appeal filed by the assessee is allowed.