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2017 (4) TMI 1384 - AT - Income TaxRevision u/s 263 - an order which is erroneous and prejudicial to the interests - The PCIT was of the view that subsidy received after start of production is revenue in nature. He also observed, the subsidy received by the assessee was nothing but contractual receipt towards supply of chemical compound, hence, should have been treated as revenue receipt forming part of operating profit of the assessee. - He observed, even if the subsidy from Kureha Corporation, Japan, is treated as capital in nature it should have been adjusted firstly from block of assets having higher rate of depreciation rather than the block having depreciation rate of 35% or proportionate adjustment should have been made. He observed, if the capital subsidy would have been adjusted against the block of assets higher rate of depreciation, the depreciation available to the assessee would be substantially less than what is claimed by the assessee. Held that:- In our view, the direction of the revisional authority to start a fresh enquiry is in the nature of roving and fishing enquiry without having any specific material before him. Though, the revisional authority has alleged that the Assessing Officer failed to make any enquiry, neither he himself has made any enquiry on the basis of material on record to point out the specific error committed by the Assessing Officer nor has mentioned the nature of enquiry to be conducted by the Assessing Officer and what more documents and details are required to be called for, considering the fact that all documents and details relating to subsidy are already available on record. Therefore, on over all consideration of facts and circumstances of this case, we are of the view that the assessment order cannot be held to be erroneous and prejudicial to the interests of Revenue, hence, PCIT was unjustified in exercising power under section 263 for revising the assessment order. - Order u/s 263 set aside - Decided in favor of assessee.
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