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2023 (3) TMI 465 - ITAT PUNERevision u/s 263 by CIT - AO has not discussed anything in the order except Gross Profit of the assessee - PCIT held that the AO failed to make enquiries regarding excess depreciation claimed by the assessee and also as a result of wrong claim of depreciation, there is incorrect computation of profit under section 115JB - PCIT also held that the AO failed to make enquiries regarding the investment in equity shares of Prestige Estate Project Limited, loss on sale of fixed assets, reduction in share application money - HELD THAT:- AO has not carried out any enquiry regarding the impugned issues mentioned in the order under section 263 of the Act. The ld.AR has not brought to our notice any document to demonstrate that the AO had carried out enquiries regarding impugned issues. Assessee has not answered or provided any information regarding the impugned issues. It is also an admitted fact by the assessee that inadvertently excess depreciation has been claimed, which is one of the impugned issues. Computation of taxability under section 115JB is affected by excess depreciation claim. Therefore, to the extent of Computation of Taxability under section 115JB and excess depreciation, there is no doubt that the assessment order is erroneous and prejudicial to the interest of the Revenue. As far as other issues are concerned, we have already mentioned that AO had not carried out any enquiry and assessee has also not made any submissions regarding the remaining issues mentioned in the order under section 263 of the Act. Therefore, we agree with the ld.Pr.CIT that order is erroneous and prejudicial to the interest of the Revenue with reference to the impugned issues mentioned in the order under section 263 of the Act by ld.Pr.CIT, except the issue of 14A disallowance. Accordingly, we uphold the order under section 263, except for the issue of disallowance under section 14A. Disallowance u/s 14A - Pr.CIT has erred in stating that 14A requires proper investigation, because as far as facts of this case are concerned, there is no exempt income and hence no disallowance under section 14A can be made. Therefore, to the extent of 14A issue, we are of the opinion that the order of ld.Pr.CIT under section 263 of the Act, is not sustainable. However, we have already clarified that the order under section 263 is sustained by us on all other issues mentioned in the order under section 263 of the Act. Appeal of assessee partly allowed.
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