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2021 (3) TMI 1229 - AT - Income TaxRevision u/s 263 - Scope of amendment of Explanation-2(c) to Section 263 - whether the Assessing Officer has passed the order after taking into account the directions or instructions issued by the CBDT under section 119 of the Income Tax Act? - whether Explanation-2(c) to Section 263 of the Act is prospective or retrospective in nature? - HELD THAT:- We find that the case before us pertains the Assessment Year 2014-15 and impugned Explanation-2(c) to Section 263 was applicable w.e.f. 01.06.2015. Therefore, we note that Explanation-2(c ) to section 263 of the Act as inserted by the Finance Act, 2015 authorizing the ld. PCIT to hold the order of the Assessing Officer erroneous in so far as prejudicial to the interest of Revenue, is prospective in nature, as held by the various Coordinate Benches of ITAT. Therefore, in our considered view the provision as specified in explanation 2(c) to section 263 of the Act cannot be applied for the year under consideration. Therefore, order passed by the assessing officer under section 143(3) dated 09.11.2016 for A.Y.2014-15, is neither erroneous nor prejudicial to the interest of revenue, and hence the order passed by the ld PCIT under section 263 of the Act is hereby quashed. - Decided in favour of assessee.
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