Dependent Agent PE unresolved for lack of factual inquiry; arm's-length distribution accepted; royalty claim rejected; 15% refund interest (Section 24...
Exemption under s.10(23C)(iiiad) upheld; appeal allowed, interest and dividends excluded from annual receipts, disallowance deleted, capital gains exe...
ITAT allowed the appeal, set aside the PCIT's revisionary order under s.263 and upheld the AO's assessment. The Tribunal held excess cash and stock revealed in survey were properly treated as business income after the assessee answered specific inquiries and the AO conducted an inquiry; invocation of s.115BBE was not mandatory. Because the AO took a plausible view, the requisite twin conditions for exercise of s.263-(i) that the assessment order is erroneous, and (ii) that it is prejudicial to Revenue-were not satisfied. Applying the principle that where two views are possible the one favourable to the assessee prevails, the PCIT's revision was quashed.
ITAT allowed the appeal, set aside the PCIT's revisionary order under s.263 and upheld the AO's assessment. The Tribunal held excess cash and stock revealed in survey were properly treated as business income after the assessee answered specific inquiries and the AO conducted an inquiry; invocation of s.115BBE was not mandatory. Because the AO took a plausible view, the requisite twin conditions for exercise of s.263-(i) that the assessment order is erroneous, and (ii) that it is prejudicial to Revenue-were not satisfied. Applying the principle that where two views are possible the one favourable to the assessee prevails, the PCIT's revision was quashed.
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