Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (7) TMI 239 - AT - Income TaxRevision u/s 263 - assessee paid transport charges without deducting tax at source - HELD THAT:- although the assessee has brought to the notice of the ld. PCIT that as per the Hon’ble ITAT decision M/S. SUGARCHEM [2018 (2) TMI 1457 - ITAT MUMBAI] no disallowance can be made u/s. 40(a)(ia) even if there is a violation under section 194C(7) of the Act and when two views are possible on this issue ,proceedings u/s. 263 cannot be initiated etc., the ld PCIT set aside the assessment order u/s. 263 without meeting the assessee’s objections legally. When two views are possible on an issue, if the AO has taken one view with which the CIT does not agree, it cannot be treated that the order passed by the AO is erroneous and prejudicial to the interest of revenue. Thus, in this case, the decision of the A O has been subsequently upheld by two different decisions of the Hon’ble ITAT, therefore , the decision taken by the assessing officer does not fall within the scope of section 263 of the Act and hence order of the PCIT is unsustainable in law. Therefore, we hold that the order passed u/s. 263 is not sustainable in law - Decided in favour of assessee
|