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2022 (11) TMI 574 - AT - Income TaxRevision u/s 263 by CIT - deduction of tax at source u/s 194H of roaming-charges - HELD THAT:- Department has made independent enquiries from assessee with respect to TDS out of roaming-charges and the assessee had filed adequate replies. Thereafter, no order was passed against assessee u/s 201(1)/201(1A) qua TDS out of roaming charges. By such action, the department has accepted that no TDS was required out of roaming-charges. As further demonstrated by assessee had filed the details of such enquiry having been made by department, to Ld. CIT in the reply to the show-cause notice u/s 263. When it is so, the Ld. CIT ought to have taken cognizance and adjudicate the proceeding of section 263 fairly and lawfully. Lastly, we observe that there are decisions in favour of assessee where it has been held that roaming charges does not attract TDS u/s 194J. We also observe from the reply given by DR that the revenue is still contesting the applicability of TDS u/s 194J to roaming charges. It is a settled law that if two views are possible and the AO has followed one which is favourable to assessee, the order of AO cannot be said to be erroneous. The reasons stated above, we are of the firm view that the revision-order passed by CIT does not fulfill the requirement of section 263. Therefore, we are inclined to hold that the revision order is not a valid order and deserves to be quashed. Appeal of assessee is allowed.
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