2026 (7) TMI 510

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..... The same is allowed in terms of the draft. To be carried out forthwith. 3. By this Appeal under Section 260A of the Income Tax Act, 1961 (for short 'the Act'), the appellant-Revenue has proposed the following questions of law arising out of the order dated 25th January, 2024 passed by the Income Tax Appellate Tribunal, 'C' Bench, Ahmedabad (for short 'the Tribunal') in ITA No. 123/AHD/2021 for Assessment Year 2015-16: "(A) Whether on the facts and circumstances of the case and in law, the IIAT erred in quashing the order passed u/s. 263 of the Act? (B) Whether on the facts and circumstances of the case, the ITAT was justified in law in holding that the erroneous allowance of excess depreciation is not prejudicial to t....

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.... quashed and set aside the assessment under Section 263 of the Act. 5. Being aggrieved, the assessee preferred an Appeal before the Tribunal. The Tribunal, after considering the facts of the case, came to the conclusion that though the order passed by the Assessing Officer is erroneous, the same is not prejudicial to the interest of Revenue and as per the provisions of Section 263 of the Act, both the conditions are required to be fulfilled, as the Assessment Order has to be erroneous and prejudicial to the interest of Revenue and the Tribunal quashed and set aside the order of the PCIT by observing as under: "9. We have heard the rival contentions of both the parties and perused the materials available on record. From the prece....

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....ment year 2019-20, when the Windmill was sold out by the assessee, we note that there is no positive income chargeable to tax arising to the assessee despite even if the depreciation is calculated at the rate of 15% on the value of the windmills. The necessary details about the taxable income of the assessee in either of the cases are available in the order of the learned PCIT order which have not been disputed by the Id. DR of the Revenue. Accordingly, we hold that the twin conditions in the given tacts and circumstances have not been satisfied. Accordingly, we hold that there cannot be any revision under the provisions of section 263 of the Act in the assessment framed under section 143(3) of the Act. As such, we quash the revision order ....