Case Law Details
Surat People’s Co Operative Bank Ltd Vs PCIT (ITAT Surat)
ITAT Surat held that invocation of revisional jurisdiction under section 263 of the Income Tax Act unsustainable as order passed by AO was neither erroneous nor prejudicial to the interest of the revenue.
Facts- The assessee is a Co-operative Bank. The case of the assessee was selected for complete scrutiny. The assessment order u/s 143(3) r.w.s. 143(3A) and 143(3B) of the Act was framed by assessing officer, on 17.03.2021, by accepting the returned income.
Thereafter, PCIT exercised his jurisdiction under section 263 of the Income Tax Act, 1961. Accordingly, based on some issued, PCIT issued show cause notice.
PCIT rejected the contention of the assessee and observed that assessing officer has not inquired and verified the issue of, depreciation on the purchase of new assets amounting to Rs.3,11,73,124/-; has not examined the fact that GST Credit lapse is an eligible expense; and as regards the reconciliation of figures of amount, reported in Form 3CD of Rs.2,35,31,575/- as not allowable u/s 43B(f) and amount actually disallowed at Rs.1,19,25,500/-, there is a discrepancy of Rs.10,75,000/-, which is not reported in Form 3CD and this aspect has remained to be verified by the assessing officer. Accordingly, the assessment order passed u/s 143(3) r.w.s. 143(3A) & 143(3B) of the Act, dated 17.03.2021, in assessee`s was set aside with a direction to the Assessing Officer to pass fresh assessment.
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