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2023 (7) TMI 373 - ITAT BANGALORERevision u/s 263 - disallowance of expenditure u/s 40(a)(ia) - Appellant has not deducted tax at source on commission on sales debited to profit and loss account - HELD THAT:- AO has examined the impugned transaction in detail during the course of assessment proceedings for the year under consideration. The assessee, during the course of assessment proceedings, had also admittedly placed on record the distribution agreement and the debit notes. From this, the only inference that can be drawn is that AO has taken a conscious decision in not making the disallowance under section 40(a)(ia). PCIT’s reasoning that the AO has not examined the issue in accordance with law and has not conducted necessary enquiries, is incorrect. Since the AO has taken a plausible view, the said Assessment Order cannot be subjected to revision u/s 263 - See MAX INDIA LTD. [2007 (11) TMI 12 - SUPREME COURT]. It is pertinent to mention that for the above said Assessment Years, the AO had called in question the allowability of the commission payments during the course of assessment proceedings and the assessee had filed similar reply as it was filed for the impugned Assessment Year. No disallowance of the expenditure was made u/s 40(a)(ia) - For Assessment Year 2018-19, the Final AO was passed subsequent to the impugned order passed u/s 263 of the Act, for the relevant Assessment Year. We quash the impugned revisionary order since the AO has taken a plausible view and had not made disallowance of impugned expenditure u/s 40(a)(ia). Decided in favour of assessee.
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