https://www.taxtmi.com/caselaws?id=450182 The ITAT Rajkot allowed the assessee's appeal against the PCIT's revision order u/s 263. The case involved limited scrutiny proceedings examining interest expense deductions u/s 57. The PCIT held the AO's assessment order was erroneous and prejudicial to revenue for inadequate verification of interest expenses claimed as deductions. However, ITAT found the AO had conducted proper enquiry during limited scrutiny proceedings specifically focused on interest expense deductibility. The assessee had filed detailed replies explaining that interest expenses were incurred exclusively for earning interest income and only proportionate expenses were claimed as deductions. Since PCIT failed to provide specific findings to controvert the assessee's submissions, the revision order was deemed invalid. en-us Fri, 23 Feb 2024 00:00:00 +0530 Thu, 29 Feb 2024 07:55:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=450182 The ITAT Rajkot allowed the assessee's appeal against the PCIT's revision order u/s 263. The case involved limited scrutiny proceedings examining interest expense deductions u/s 57. The PCIT held the AO's assessment order was erroneous and prejudicial to revenue for inadequate verification of interest expenses claimed as deductions. However, ITAT found the AO had conducted proper enquiry during limited scrutiny proceedings specifically focused on interest expense deductibility. The assessee had filed detailed replies explaining that interest expenses were incurred exclusively for earning interest income and only proportionate expenses were claimed as deductions. Since PCIT failed to provide specific findings to controvert the assessee's submissions, the revision order was deemed invalid. Case-Laws Income Tax Fri, 23 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=450182