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2020 (10) TMI 407 - AT - Income TaxRevision u/s 263 - deduction claimed by the assessee u/s 54F disallowed - case of the assessee was taken up for limited scrutiny as per the notice issued under section 143(2) - PCIT on perusal of the assessment record noticed that the deduction u/s 54F allowed by the AO in respect of purchase of agricultural land and construction of house which is not admissible - HELD THAT:- When the enquiry in fact has been conducted and the AO has reached a particular conclusion, though reference to such enquiries has not been made in the order of assessment, but the same is apparent from the record of the proceedings, the invocation of jurisdiction by the ld. CIT was unsustainable. See DG HOUSING PROJECTS LTD [2012 (3) TMI 227 - DELHI HIGH COURT] Where the AO has made an enquiry and taken a possible/permissible view, then the said order cannot be treated as erroneous and prejudicial to the interests of the revenue unless the view taken by the AO is unsustainable in law. In case of Malabar Industrial Co. Ltd. [2000 (2) TMI 10 - SUPREME COURT] has held that an order of ITO cannot be treated as prejudicial to the interests of the revenue if the ITO adopted one of the course permissible in law and it has resulted in loss of revenue or two views are possible and the ITO has taken one view with which the ld. CIT does not agree, it cannot be treated as an erroneous order prejudicial to the interests of the revenue unless the view taken by the ITO is unsustainable in law. The view taken by the AO is a possible view though may not be the only view. Further once the issue of allowability of deduction under section 54F is a debatable issue and the AO has taken a possible view, then the ld. PCIT is not permitted to invoke the provisions of section 263 merely because he does not agree with the view of the AO. Hence we hold that the impugned order passed by the ld. PCIT is not sustainable and the same is liable to be set aside. - Decided in favour of assessee.
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