https://www.taxtmi.com/caselaws?id=313147 ITAT Surat quashed PCIT's revision order under section 263, ruling that the assessment was not erroneous or prejudicial to revenue interests. The case involved limited scrutiny for refund verification and ICDS compliance. PCIT found fault with depreciation treatment differences between Income Tax Act and Companies Act schedules. ITAT held that AO cannot exceed limited scrutiny scope, and since the assessee provided complete financial statements and tax audit reports during assessment, the AO had examined depreciation issues and taken a plausible view. The tribunal applied Malabar Industries precedent, emphasizing that revenue loss alone doesn't constitute prejudicial error when AO adopts a legally permissible course. en-us Mon, 25 Sep 2023 00:00:00 +0530 Wed, 27 Mar 2024 19:51:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=313147 ITAT Surat quashed PCIT's revision order under section 263, ruling that the assessment was not erroneous or prejudicial to revenue interests. The case involved limited scrutiny for refund verification and ICDS compliance. PCIT found fault with depreciation treatment differences between Income Tax Act and Companies Act schedules. ITAT held that AO cannot exceed limited scrutiny scope, and since the assessee provided complete financial statements and tax audit reports during assessment, the AO had examined depreciation issues and taken a plausible view. The tribunal applied Malabar Industries precedent, emphasizing that revenue loss alone doesn't constitute prejudicial error when AO adopts a legally permissible course. Case-Laws Income Tax Mon, 25 Sep 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=313147