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2022 (10) TMI 345 - AT - Income TaxRevision u/s 263 by CIT - late deposit of TDS amount in the Government Account - HELD THAT:- Assessee has deposited the TDS in the subsequent year, hence there is no loss to the Revenue, therefore the order passed by the assessing officer is not prejudicial to the interest of Revenue, however it can be erroneous order. No doubt, as per provisions of the Act, the assessee can be treated ‘as assessee in default’, but for the purpose of section 263 order passed by the AO is not prejudicial to the interest of Revenue, as the assessee has deposited the TDS amount in subsequent year, hence there is no loss of revenue. We note that AO in the assessee`s case under consideration has taken possible view, therefore order passed by the assessing officer is neither erroneous nor prejudicial to the interest of Revenue. The impugned order passed u/s. 143(3) was passed by assessing officer, after calling for relevant information and after detailed examination of the same. AO has passed the assessment order after calling for details on the issue and after considering the reply and documents and after verification of the same and after due application of mind passed the assessment order, so it cannot be termed as erroneous and prejudicial to the interest of the revenue. PCIT’s finding fault, with the order of the Assessing Officer is erroneous as well as prejudicial to the interest of revenue, on account of lack of inquiry, has to fail. Based on these facts and circumstances, we quash the order passed by the ld PCIT u/s 263. Appeal filed by the assessee is allowed.
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