https://www.taxtmi.com/caselaws?id=769848 ITAT Delhi quashed CIT's revision order u/s 263 regarding depreciation claimed on intangible assets under development. The tribunal held that depreciation claim was supported by SC precedent in Malabar Industrial Co. Ltd., establishing that revenue loss alone doesn't constitute prejudice to revenue interest. Following SC ruling in CIT vs. Max India Ltd., the tribunal found that while assessment may be erroneous, it wasn't prejudicial to revenue since depreciation on goodwill is allowable expenditure. Section 263 provisions cannot be invoked when AO's view is sustainable in law. Appeal allowed. en-us Tue, 29 Apr 2025 00:00:00 +0530 Sat, 03 May 2025 14:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=769848 ITAT Delhi quashed CIT's revision order u/s 263 regarding depreciation claimed on intangible assets under development. The tribunal held that depreciation claim was supported by SC precedent in Malabar Industrial Co. Ltd., establishing that revenue loss alone doesn't constitute prejudice to revenue interest. Following SC ruling in CIT vs. Max India Ltd., the tribunal found that while assessment may be erroneous, it wasn't prejudicial to revenue since depreciation on goodwill is allowable expenditure. Section 263 provisions cannot be invoked when AO's view is sustainable in law. Appeal allowed. Case-Laws Income Tax Tue, 29 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=769848