https://www.taxtmi.com/caselaws?id=206252 The ITAT allowed the appeal and quashed the Ld. Commissioner's order under section 263 of the Income Tax Act for the asstt. year 2005-06. The ITAT found that the AO's order was not erroneous and prejudicial to revenue as the AO had conducted inquiries and considered explanations provided by the assessee, resulting in no tax effect even if disallowances were made, indicating no loss of tax revenue. The ITAT emphasized the CIT's obligation to establish both errors and prejudice to revenue, ultimately ruling in favor of the assessee. en-us Thu, 16 Dec 2010 00:00:00 +0530 Fri, 20 Jan 2012 14:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=206252 The ITAT allowed the appeal and quashed the Ld. Commissioner's order under section 263 of the Income Tax Act for the asstt. year 2005-06. The ITAT found that the AO's order was not erroneous and prejudicial to revenue as the AO had conducted inquiries and considered explanations provided by the assessee, resulting in no tax effect even if disallowances were made, indicating no loss of tax revenue. The ITAT emphasized the CIT's obligation to establish both errors and prejudice to revenue, ultimately ruling in favor of the assessee. Case-Laws Income Tax Thu, 16 Dec 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=206252