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2018 (4) TMI 40 - AT - Income TaxRevision u/s 263 - allowability of charge of interest - Held that:- We find that the Assessing Officer has duly asked the assessee and made enquiry regarding the charge of interest. The specific question asked was: “the assessee is asked to explain why interest has not been capitalized.” From the above, it is apparent that the charge of interest to profit and loss account and non capitalization of the same was duly enquired by the Assessing Officer. In response, the assessee has referred to Accounting Standard 16 issued by the Institute of Chartered Accountant of India. Now we note that it is not the case of the Commissioner of Income Tax (Appeals) that the said project was not substantially completed as submitted by the assessee. Hence, prima facie, the view adopted by the Assessing Officer cannot be said to be incorrect. Hence, if the Assessing Officer has adopted one of the views, it cannot be said that the assessment order needs to be visited by revisionary powers of the ld. Commissioner of Income Tax (Appeals). Furthermore, it is also not the case of the ld. Commissioner of Income Tax (Appeals) that the project is not substantially complete and the said Accounting Standard – 16 has not been rightly completed. Thus we set aside the order of the ld. Commissioner of Income Tax (Appeals) and quash the order passed u/s. 263 of the Act. - Decided in favour of assessee.
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