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2023 (8) TMI 457 - HC - Income TaxRevision u/s 263 - Various grounds of revision - Stock compensation expense - HELD THAT:- ITAT has noticed that the assessee had not offered the tax on the stock compensation on the previous year and AY. 2014-15, the assessee has offered the same to tax. This aspect was misconstrued by the CIT(A) to the effect that the assessee was claiming expenditure. ITAT has rightly analyzed and held that there was no ground for revision u/s 263. Treatment of state taxes paid in USA - ITAT has noticed that the AO had applied his mind and taken a decision after due query in his notice issued u/s 142(1) to which the assessee had submitted its reply in detail. ITAT has rightly noticed that the CIT(A)’s view is based on the observations contained in his order. It was argued that assessee had placed reliance on the authorities rendered by the Kolkata High Court and Delhi High Court. He pointed out that the CIT(A) has observed that the AO had not examined the issue vis-a-vis the law laid down by other High Courts and the other jurisdictional High Court. In our view, the ITAT has rightly held that such observations cannot be the basis on which revision can be made under Section 263. We are at one with the ITAT’s order. Foreign remittance without deducting TDS - ITAT has recorded that the AO has taken a ‘possible view’ on this aspect after ‘due enquiry and application of mind’. Similarly, with regard to the fourth issue namely, lease of ‘Sasken brand’ to related parties free of cost, the AO has taken a ‘possible view’. In the authority relied upon by the Revenue, the Apex court [2016 (5) TMI 493 - SUPREME COURT] has held in para 21 that there can be no doubt that so long as the view taken by the AO is a ‘possible view’, the same ought not be interfered by the CIT under Section 263 of the Act merely on the ground that there could be another possible view in the matter. As noticed hereinabove, the ITAT has recorded that on the first issue, the CIT has misconstrued the facts. On issues No. 2, 3 and 4, the AO has taken ‘possible views’. As such, the authority cited by the Revenue inures to the benefit of the assessee. Decided against revenue.
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