https://www.taxtmi.com/caselaws?id=757956 ITAT Mumbai allowed the assessee's appeal against CIT's revision order u/s 263. The case involved income determination for a non-resident establishing business connection. CIT contended AO's assessment was erroneous as Section 44B provisions weren't applied, resulting in under-assessment. ITAT held that AO correctly applied beneficial provisions under Article 7 of India-UAE DTAA after establishing business connection. The tribunal ruled that where AO takes a plausible view supported by relevant provisions, the assessment cannot be deemed erroneous and prejudicial to revenue interest. Powers u/s 263 require twin conditions of assessment being both erroneous and prejudicial to revenue. ITAT set aside CIT's order and restored AO's assessment. en-us Tue, 30 Jul 2024 00:00:00 +0530 Wed, 04 Sep 2024 12:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=757956 ITAT Mumbai allowed the assessee's appeal against CIT's revision order u/s 263. The case involved income determination for a non-resident establishing business connection. CIT contended AO's assessment was erroneous as Section 44B provisions weren't applied, resulting in under-assessment. ITAT held that AO correctly applied beneficial provisions under Article 7 of India-UAE DTAA after establishing business connection. The tribunal ruled that where AO takes a plausible view supported by relevant provisions, the assessment cannot be deemed erroneous and prejudicial to revenue interest. Powers u/s 263 require twin conditions of assessment being both erroneous and prejudicial to revenue. ITAT set aside CIT's order and restored AO's assessment. Case-Laws Income Tax Tue, 30 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=757956