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2011 (9) TMI 633 - ITAT DELHIValidity of revisionary powers exercised u/s 263- Airport Authority of India- exemption u/s 10(29) of the Act-depreciation on terminal building.- terminal building treated as plant- Held that:- For an order under Section 263 of the Act to be sustainable, the twin conditions of error in the assessment order and causing of prejudice to the interests of the Revenue must be evincible to co-exist in the assessment order. Every loss of revenue as a consequence of an order of the AO cannot be treated to be prejudicial to the interests of the Revenue; and that where the AO has adopted one of the courses permissible in law and which has resulted in loss of revenue, the assessment order cannot be called prejudicial to the interest of the Revenue, unless the AO's view is unsustainable in law. In present case since none of the conditions are satisfied hence, the order of the learned CIT on this issue is set aside and that of the AO, granting exemption to the assessee u/s 10(29) of the Act on its income derived from the letting out of the warehouses and cargo complexes at the airports, and depreciation on its terminal and ancillary building at the airport, stating it to be a plant is revived. Decided in favor of assessee.
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