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2022 (11) TMI 301 - ITAT RAJKOTRevision u/s 263 by CIT - assessee claimed deduction u/s 80IA - HELD THAT:- As pertinent to note that the very issue which was taken into account by the PCIT u/s 263 of the Act was already controverted by the Assessing Officer to the assessee during the assessment proceedings under Section 143(3) of the Act and after verification has been disallowed upon which the CIT(A) has rejected the appeal of the assessee as stated by the Ld. AR during the hearing. Section 263 of the Act is invoked when there is assessment order which is prejudicial to the interest of Revenue. But in the present case, the very basis of exercising the revisionary power u/s 263 does not survive as the AO has taken precaution and verified all the factors on the very same issue during the assessment proceedings. PCIT cannot review the AO’s order unless there is substantial loss on the part of the AO which is prejudicial to the interest of the Revenue. In the present case, the very basis of Section 263 of the Act has not been properly invoked by the PCIT as the Assessing Officer has taken utmost interest of the Revenue and the same cannot be stated as prejudicial to the interest of Revenue. Hence, appeal of the assessee is allowed.
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