https://www.taxtmi.com/caselaws?id=767599 ITAT Delhi quashed CIT's revision order under section 263. AO incorrectly applied 10% TDS rate under section 194I instead of 2% rate under section 194C for construction contracts. Since the error favored revenue by charging higher TDS rate, it was prejudicial to assessee, not revenue. The mandatory twin conditions for section 263 revision - order being erroneous and prejudicial to revenue - were not satisfied. Following SC precedents in Malabar Industrial Co and Max India Ltd, ITAT held revision proceedings invalid and allowed assessee's appeal. en-us Mon, 10 Feb 2025 00:00:00 +0530 Fri, 21 Mar 2025 08:25:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=767599 ITAT Delhi quashed CIT's revision order under section 263. AO incorrectly applied 10% TDS rate under section 194I instead of 2% rate under section 194C for construction contracts. Since the error favored revenue by charging higher TDS rate, it was prejudicial to assessee, not revenue. The mandatory twin conditions for section 263 revision - order being erroneous and prejudicial to revenue - were not satisfied. Following SC precedents in Malabar Industrial Co and Max India Ltd, ITAT held revision proceedings invalid and allowed assessee's appeal. Case-Laws Income Tax Mon, 10 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=767599