2025 (3) TMI 1873

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....umar Das, CIT-DR ORDER PER: INTURI RAMA RAO, AM This appeal filed by the assessee is directed against the order of the Principal Commissioner of Income Tax (PCIT) dated 31.03.2022 passed u/s. 263 of Income Tax Act, 1961 (hereinafter "the Act") for Assessment Year (AY) 2017-18. 2. Brief facts of the case are that the appellant is a company incorporated under the provisions of the Compan....

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....ility of patent fees paid to subsidiary company Delphi Solutions, Luxembourg as revenue expenditure. The PCIT accordingly set aside the assessment order to the file of the AO for de novo assessment in accordance with law after affording reasonable opportunity of hearing to the assessee. 4. Being aggrieved, the appellant is in appeal before us in the present appeal. 5. When the appeal was cal....

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....se where the Assessing Officer examined the claim took one of the plausible views, the assessment order cannot be termed as an "erroneous". 7. In the light of the above legal position, we proceed to examine the facts of the present case to find out whether the assessment order is erroneous and prejudicial to the interest of Revenue. 8. In the present case the material on record does not indi....

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....3 is to remove the prejudice caused to the Revenue by the erroneous order passed by the assessing officer and it empowers the Commissioner to initiate suo motu proceedings, when either the assessing officer takes a wrong decision without considering materials available on record or renders a decision without enquiry. The role of the assessing officer under the Income Tax Act, 1961 is not only that....