Section 263 Revision Quashed for Lack of Error and Prejudice

Gujarat Tea Processors & Packers Ltd. Vs PCIT (ITAT Ahmedabad) Section 263 Revision Quashed Where AO Examined Issues; CSR-Linked Donations Eligible for 80G Deduction: The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) allowed the assessee’s appeal for AY 2020-21 and quashed the revisionary order passed under section 263 by the Principal Commissioner of Income Tax (PCIT), holding that the twin conditions of “erroneous” and “prejudicial to the interests of Revenue” were not satisfied. The PCIT had invoked section 263 on two issues: Allowability of deduction under sec...