Booking.Com India Support & Marketing Services Private Limited Vs PCIT (ITAT Mumbai)
ITAT Mumbai held that revisionary proceeding under section 263 of the Income Tax Act not justifiable when AO has taken most plausible view. Accordingly, appeal is allowed to that extent.
Facts- The present appeal has been preferred by the assessee. The sum and substance of the grievance of the assessee is that the ld. PCIT erred in assuming jurisdiction conferred upon him by the provisions of Section 263 of the Act and further erred in holding that the assessment order dated 05/09/2022 framed u/s 143(3) r.w.s. 144B of the Act is erroneous inasmuch as it is prejudicial to the interest of the revenue on the ground that the AO did not examine the claim of ESOP charges and allowed CSR expenditure u/s 80G of the Act.
Conclusion- Held that in the present case, due to plethora of decision on the issue of ESOP expenditure, the AO has taken the most plausible view and it cannot be said that the view taken by the AO is erroneous. Merely because the decision of the Hon’ble Karnataka High Court in the case of CIT vs. Biocon Ltd. 1121 taxmann.com 351] is sub-judice before the Hon’ble Supreme Court would not make the assessment order erroneous simply because the AO has followed the decision of the Hon’ble Karnataka High Court. Thus, we do not find any merit in the findings of the ld. PCIT in the impugned order insofar as ESOP expenditure is concerned and we do not find the impugned assessment order as erroneous inasmuch as it is prejudicial to the interest of the revenue.
