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2019 (1) TMI 205 - AT - Income TaxRevision u/s 263 - enhanced deduction of section 80P - provision for bad and doubtful debts and provision for gratuity fund are to be disallowed in computing the total income of the assessee - Held that:- Referring to CBDT vide circular no. 37/2016 dated 02.11.2016 in the context of enhanced claim of deduction u/s 80IA any disallowance even if it is to be made towards provision for gratuity fund and provision for bad and doubtful debts would only go to increase the business income of the assessee society and in turn, automatically result in enhanced claim of deduction u/s 80P of the Act. Hence it becomes revenue neutral. Accordingly, it could be safely concluded that there is no prejudice that is caused to the interests of the revenue. Even if the order of the ld. AO in not enquiring about these two issues, becomes erroneous, we hold that twin conditions of section 263 of the Act is not cumulatively satisfied in the instant case. Reliance is made on the decision of Hon’ble Apex Court in the case of Malabar Industries Ltd. (2000 (2) TMI 10 - SUPREME COURT). Accordingly, we have no hesitation in quashing the revision proceedings initiated u/s 263 of the Act in the facts of the instant case by the ld. Administrative CIT. Accordingly, grounds raised by the assessee are allowed.
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