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2024 (1) TMI 1077 - ITAT DELHIRevision u/s 263 - taxability of interest on enhanced compensation - assessee argued that revision merely based on audit objection - whether AO has validly held that interest under section 28 of Land Acquisition Act, 1894 granted by the court is an integral part of enhanced compensation and exempt u/s 10(37) in case of the assessee? - HELD THAT:- Record reveals that the order of the Ld. PCIT was prompted solely by the audit objection. Hon’ble P & H High Court has held in CIT vs. Sohana Woollen Mills [2006 (9) TMI 157 - PUNJAB AND HARYANA HIGH COURT] that mere audit objection cannot lead to an inference that the order of the Ld. AO is erroneous or prejudicial to the interest of the Revenue. Since the order of the Ld. AO is based on the decision of the Hon’ble Supreme Court in Ghanshyam HUF[2009 (7) TMI 12 - SUPREME COURT] on the issue of taxability of interest received by the assessee under section 28 of Land Acquisition Act, it can at best be said to be a debatable issue on which two views are possible and the Ld. AO accepts one of the views. In this view of the matter too, the Ld. PCIT cannot assume revisional jurisdiction as held in CIT vs. Hindustan Coca Cola Beverages P Ltd. [2011 (1) TMI 138 - DELHI HIGH COURT] Thus we hold that the order of the Ld. PCIT is not sustainable - Decided in favour of assessee.
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