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2017 (3) TMI 1817 - AT - Income TaxRevision u/s 263 - as per CIT assessee could not have claimed depreciation on plant and machinery given on lease and since the assessee has not reduced the lease value of plant and machinery from block of assets, therefore, the assessee has claimed excess depreciation - HELD THAT:- Not only specific query was raised by the AO but also detailed reply has been made on the basis of which the AO has framed the assessment and allowed the depreciation on the leased asset . It cannot be held that in the light of this record, the AO has not applied his mind or there is any lack of inquiry made by the AO on the impugned issue. When, the AO has applied his mind on the given facts and material on record which has been specifically required by him, then it cannot be held that the AO has passed the assessment order without any application of mind. Once, a particular view has been taken by the AO which is a possible view in facts and in law, then unless the Ld. PCIT points out that, such view is not tenable either on law or on facts, then such an assessment order cannot be cancelled within the scope and ambit of section u/s 263. See MAX INDIA LTD. [2007 (11) TMI 12 - SUPREME COURT] AO has applied his mind and taken a view therefore, such an order of assessment cannot be held to be “erroneous in so far as prejudicial to the interest of revenue‟, unless it is shown that the view of the AO, itself is untenable in law and on facts. Here the ld.PCIT has not even specified as to what kind on enquiry is to be conducted by the AO. Thus, such an assessment order cannot be cancelled u/s 263 - Decided in favour of assessee.
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