Assessment By AO Can't Be Termed As Prejudicial To Interest Of Revenue If It Doesn't Result In Any Loss To Revenue: Indore ITAT
Live LawOn finding that the facts of the case do not warrant application of section 263 of the Income Tax Act, the Indore ITAT set aside the revision order passed by PCIT and restored the original assessment-order passed by the AO. In the light of those rulings, the AO has rightly assessed the income at normal rates of tax, hence there is no loss of revenue to department and consequently the order passed by AO is not prejudicial to the interest of revenue.” As per the brief facts of the case, the Assessee's return was selected for scrutiny. Subsequently, PCIT examined the record of assessment-proceeding and viewed that the assessment-order passed by AO is erroneous in so far it is prejudicial to the interest of revenue which attracts revisionary-jurisdiction u/s 263. The Bench noted that during assessment-proceeding, there were specific queries raised by AO with regard to the excess-stock/additional income identified during survey and the assessee also filed reply to AO.