https://www.taxtmi.com/caselaws?id=768938 The ITAT Mumbai allowed the assessee's appeal against the PCIT's revision order u/s 263. The tribunal held that the AO had conducted adequate enquiries through multiple notices regarding bad debt deductions u/s 36(1)(vii) and depreciation on investment shifting. Citing Malabar Industrial Co. Ltd., the tribunal emphasized that s.263 requires twin conditions: the AO's order must be both erroneous and prejudicial to revenue. The tribunal found the revision proceedings lacked merit as they fell outside the recorded reasons' scope, declaring the s.263 notice void-ab-initio and the consequent order bad in law. en-us Tue, 25 Mar 2025 00:00:00 +0530 Wed, 16 Apr 2025 08:38:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=768938 The ITAT Mumbai allowed the assessee's appeal against the PCIT's revision order u/s 263. The tribunal held that the AO had conducted adequate enquiries through multiple notices regarding bad debt deductions u/s 36(1)(vii) and depreciation on investment shifting. Citing Malabar Industrial Co. Ltd., the tribunal emphasized that s.263 requires twin conditions: the AO's order must be both erroneous and prejudicial to revenue. The tribunal found the revision proceedings lacked merit as they fell outside the recorded reasons' scope, declaring the s.263 notice void-ab-initio and the consequent order bad in law. Case-Laws Income Tax Tue, 25 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=768938