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2021 (9) TMI 438 - ITAT JODHPURRevision u/s 263 - profit and loss account on account of PAC Development Fund under the head 'Other expenses' which is not an actual expenditure towards business activities - HELD THAT:- Where two views are possible and where the AO has followed the later decision while allowing the claim of the assessee, the view so taken by the AO cannot be held to be erroneous in nature. Also interesting to note that just prior to issuance of show-cause u/s. 263 by the ld. PCIT, the ld. CIT(A) in assessee's own case for A.Y 2013-14 and A.Y 2016-17 has allowed the claim of the assessee towards such contribution towards PAC development fund following the decision of the Hon'ble Rajasthan High Court [2017 (11) TMI 453 - RAJASTHAN HIGH COURT] These orders so passed by the ld. CIT(A) thus form part of the records and therefore, where the matter is consistently decided in favour of the assessee earlier by the Hon'ble Rajasthan High Court which is subsequently followed by the ld. CIT(A) and where the AO decide to follow the same binding decisions and follow the rule of consistency and the settled position in the earlier years, the order passed by the AO cannot be held as erroneous in nature - the order so passed by the ld. Pr. CIT is hereby set-aside and the order of the AO is sustained. - Decided in favour of assessee. .
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