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2020 (1) TMI 1198 - AT - Income TaxRevision u/s 263 - denial the deduction u/s 10A - DRP has not considered the Proviso to sub section (4) of section 92C - HELD THAT:- Tribunal in A.T. Kearney India Pvt Ltd [2019 (6) TMI 1092 - ITAT DELHI] while considering similar ground of appeal held that the Proviso to section 92C(4) of the Act would not be attracted on voluntary transfer pricing adjustment made by the assessee and Proviso was to apply only in cases where adjustment has been made by AO / TPO. It was further held that once the assessee has voluntarily offered the income to tax, it forms part of the profit of the business and deduction u/s 10A cannot be denied. M/S I. GATE GLOBAL SOLUTIONS LTD [2014 (6) TMI 1007 - KARNATAKA HIGH COURT] once the assessee suo moto allowed the deduction u/s 10A in the return of income while determining the ALP, the revenue cannot deny the deduction u/s 10A Re-assessment the AO raised necessary queries, the assessee furnished detailed submission, which was accepted by the AO though no reference about the consideration of such issue in the assessment order. Considering the aforesaid legal discussion, we are of the considered view that the view taken by the AO in accepting the explanation furnished by assessee in response to the show cause notice dated 18-12-2017 during re-assessment was one of the possible views and the order dated 29-12-2017 is not erroneous though may be prejudicial to the interest of revenue. Thus, the twin conditions as enumerated in section 263 is not fulfilled, hence, the revision of the assessment order is not justified. More over the issue on which the order is revised is debatable issue. Considering the fact that twin conditions as enunciated in section 263 are not satisfied, therefore, the revision order passed u/s 263 dated 25-06-2018 is set aside / quashed. Appeal of the assessee is allowed.
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