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2022 (11) TMI 612 - ITAT AHMEDABADRevision u/s 263 by CIT - assessee had claimed deduction with regard to various expenses like consultation charges, professional fees, security charges, professional expenses, brokerage expenses etc. on which no TDS was deducted - According to the Pr. CIT, omission to deduct TDS should have called for disallowance by the Assessing Officer u/s. 40(a)(ia) and hence the assessment order was erroneous in as much as prejudicial to the interest of the revenue - HELD THAT:- Regarding the issue of non-deduction of TDS, the assessee has placed detailed evidences that TDS has already been deducted in respect of all payments, however, the Pr. CIT was unable to appreciate the factual and legal submission placed before him. Regarding expenses on account of labour charges in connection with the construction of underground water tank and club house facility, the assessee has already placed on record, a detailed submission in this regard before AO, which was also duly considered by him while passing 143(3) order. Accordingly, in our view, since the Assessing Officer has conducted due enquiries on these aspects (TDS on various payments and allowability of deduction for labour charges), the order passed by the ld. Assessing Officer is not erroneous and prejudicial to the interest of the revenue. Regarding the scope of enquiry u/s 263 of the Act, it may be useful to refer to jurisdictional Gujarat High Court decision in the case of Principal Commissioner of Income Tax-3 v. Minal Nayan Shah [2020 (9) TMI 825 - GUJARAT HIGH COURT]. We are of the view that ld. Pr. CIT has erred in facts and in law invoking the provisions of section 263 in the instant set of facts. Accordingly, we direct that the order passed by the Pr. CIT u/s. 263 may be set aside - Decided in favour of assessee.
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