https://www.taxtmi.com/caselaws?id=780347 ITAT Ahmedabad upheld the Principal CIT's revision under section 263, finding the assessment erroneous and prejudicial because the AO failed to determine whether government grants should have been reduced from asset cost/WDV or taxed as income. The tribunal agreed that statutory amendments and ICDS-VII require grants relating to depreciable assets to reduce asset value or be offered as income; the assessee amortised only a portion while claiming full depreciation, producing excess depreciation. Reliance on accounting treatment or prior acceptance was rejected. Decision against the assessee; no interference with Pr. CIT's order. en-us Wed, 01 Oct 2025 00:00:00 +0530 Tue, 28 Oct 2025 12:51:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=780347 ITAT Ahmedabad upheld the Principal CIT's revision under section 263, finding the assessment erroneous and prejudicial because the AO failed to determine whether government grants should have been reduced from asset cost/WDV or taxed as income. The tribunal agreed that statutory amendments and ICDS-VII require grants relating to depreciable assets to reduce asset value or be offered as income; the assessee amortised only a portion while claiming full depreciation, producing excess depreciation. Reliance on accounting treatment or prior acceptance was rejected. Decision against the assessee; no interference with Pr. CIT's order. Case-Laws Income Tax Wed, 01 Oct 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=780347