https://www.taxtmi.com/caselaws?id=446902 ITAT Surat-AT allowed the assessee's appeal against PCIT's revision order u/s 263. The case involved failure to deduct TDS on contract payments, with PCIT directing 30% disallowance under Section 40(a)(ia). ITAT held that AO's order was not erroneous or prejudicial to revenue interest, distinguishing between lack of inquiry versus inadequate inquiry. Following SC precedent in Malabar Industries, ITAT ruled that when AO adopts a permissible course in law resulting in revenue loss, it cannot be deemed erroneous unless the view is legally unsustainable. The AO had conducted adequate inquiry by calling for details, examining documents, and applying due consideration before passing the assessment order. en-us Mon, 11 Dec 2023 00:00:00 +0530 Thu, 14 Dec 2023 08:29:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=446902 ITAT Surat-AT allowed the assessee's appeal against PCIT's revision order u/s 263. The case involved failure to deduct TDS on contract payments, with PCIT directing 30% disallowance under Section 40(a)(ia). ITAT held that AO's order was not erroneous or prejudicial to revenue interest, distinguishing between lack of inquiry versus inadequate inquiry. Following SC precedent in Malabar Industries, ITAT ruled that when AO adopts a permissible course in law resulting in revenue loss, it cannot be deemed erroneous unless the view is legally unsustainable. The AO had conducted adequate inquiry by calling for details, examining documents, and applying due consideration before passing the assessment order. Case-Laws Income Tax Mon, 11 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=446902