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2017 (1) TMI 985 - AT - Income TaxRevision u/s 263 - whether AO order is erroneous, as well as prejudicial to the interest of the revenue? - Assessing Officer did not consider the aspect of whether the depreciation was allowable to the assessee under the given set of circumstances - Held that:- In the present facts of the case, Ld. AO had made enquiries regarding the additions that has been made to the fixed assets and the assessee had given details including the bills of purchase of the plant and machinery in that regard. All these are part of the record of the case. Assessment order cannot be termed as erroneous unless it is not in accordance with law. If an Income Tax Officer acting in accordance with law makes an assessment and takes a plausible view, the same cannot be branded as erroneous by Ld. PR CIT, simply because according to him order should have been written more elaborately. CIT has not been able to successfully establish through his enquiry that the order passed by Ld. AO is unsustainable in law. Moreover the view taken by Ld. AO is a plausible view, which is supported by various judicial precedents. The assessment order passed cannot be called to be erroneous though may be prejudicial to the interest of the revenue. As both the ingredients does not stand fulfilled of being erroneous, as well as prejudicial to the interest of the revenue, the order passed by Ld. PR. CIT is hereby quash and set-aside. - Decided in favour of assessee
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