Revision u/s. 263 upheld as depreciation disallowed based on incorrect understanding of facts

Shreeji Associates Vs PCIT (ITAT Ahmedabad) ITAT Ahmedabad held that revisionary proceedings under section 263 of the Income Tax Act justified since PCIT correctly observed that the very basis of disallowance of depreciation was on an incorrect understanding of the facts by AO. Accordingly, revision order upheld. Facts- The assessee is engaged in the business of real estate business and construction of residential bungalows. On perusal of Profit & Loss Account, the PCIT observed that the assessee had only one project namely Shree Hari Residency relating to construction of bungalows. PCIT o...