https://www.taxtmi.com/caselaws?id=446897 The ITAT Hyderabad held that PCIT cannot exercise revision powers u/s 263 solely because AO failed to initiate penalty proceedings u/s 271(1)(c) during assessment completion u/s 143(3). Following precedent from Sri Adithya Homes Private Limited and Rakesh Nain Trivedi cases, the Tribunal ruled that when multiple interpretations of taxing statute exist, the interpretation favoring the assessee must be adopted, particularly regarding penalties. The revision order was deemed invalid as AO's non-initiation of penalty proceedings cannot be considered erroneous or prejudicial to revenue interest without specific proof referenced to the assessment order. en-us Wed, 29 Nov 2023 00:00:00 +0530 Wed, 13 Dec 2023 08:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=446897 The ITAT Hyderabad held that PCIT cannot exercise revision powers u/s 263 solely because AO failed to initiate penalty proceedings u/s 271(1)(c) during assessment completion u/s 143(3). Following precedent from Sri Adithya Homes Private Limited and Rakesh Nain Trivedi cases, the Tribunal ruled that when multiple interpretations of taxing statute exist, the interpretation favoring the assessee must be adopted, particularly regarding penalties. The revision order was deemed invalid as AO's non-initiation of penalty proceedings cannot be considered erroneous or prejudicial to revenue interest without specific proof referenced to the assessment order. Case-Laws Income Tax Wed, 29 Nov 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=446897