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2023 (8) TMI 1337 - AT - Income TaxRevision u/s 263 - payment towards registration fees are not allowable as revenue expenses as per provision of section 37(1) of the Act - HELD THAT:- Scope of revisionary jurisdiction u/s 263 is very specific, limited and also different from appellate jurisdiction. Law contained in section 263 does not allow ld. PCIT to impose his view over judicious view adopted by the ld. AO unless the view adopted by the ld. AO is established to be not at all sustainable in law. AO in the present case on appreciation of the facts and using his judicial wisdom allowed sum as borne by the assessee towards registration of lease deed by debiting in the profit and loss account u/s 37(1) - The view of the AO in present case is also supported by case of Cinecita Pvt. Ltd. [1982 (2) TMI 58 - BOMBAY HIGH COURT] as held that the impugned expenditure did not involve any element of premium in the amount claimed as expenditure. It was incurred only to draw up and get registered an effective and proper lease deed and would have remained the same irrespective of the period of lease as long as it was more than one year. Further the period of lease itself could not be decisive of the question whether the asset was enduring nature. On these facts, the impugned expenditure was revenue in nature. In the present case of the assessee was selected for scrutiny on few issues it cannot be said that there was lack of enquiry on the part of AO on this issue. It is a settled law by now that where the AO has exercised the quasi judicial power vested in him in accordance with law and arrived at a conclusion and such a conclusion cannot be considered erroneous simply because the ld. PCIT does not feel satisfied with the conclusion - extent of enquiry cannot be stretched to any level by forcing the AO to go through the assessment process again and again. Thus the assessment order passed by the AO was after full enquiry and, therefore, the case does not fall within the clause (a) and (b) of Explanation 2 to Section 263 - Decided in favour of assessee.
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