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2016 (2) TMI 1082 - AT - Income TaxRevision u/s 263 - contribution to settlement guarantee fund - Held that:- In the instant case, there was nothing on record that would enable the Learned CIT on his examination to come to a conclusion that the Learned AO had allowed an illegitimate claim towards ‘Contribution to SGF’ and the accounting treatment done by the assessee with regard to the same. It is not in dispute that the assessee had duly credited the profit and loss account by the same figure of ₹ 5,76,07,622/- and had only tried to eliminate the said income attributable to the Fund by debiting the same in its profit and loss account and therefore it becomes revenue neutral. We hold that CIT had not brought any new material on record to deviate from the stand taken by the revenue in the earlier years commencing from 1998 onwards on the impugned issue ; we hold that the Learned CIT had not stated in his show cause notice or in his order as to how the order passed by the Learned AO is erroneous and legally unsustainable ; we hold that the amount debited by the assessee in its profit and loss account towards ‘Contribution to SGF’ is not in the nature of ‘provision’ as alleged in the impugned order passed u/s 263 of the Act. Hence the order passed by the Learned AO is neither erroneous nor prejudicial to the interest of the revenue. Hence the revisionary jurisdiction u/s 263 of the Act is not warranted in such a case. - Decided in favour of assessee.
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