ITAT set aside CIT(A)’s order u/s 263 (of Income Tax Act, 1961) as AO had passed a proper order
ITAT set aside CIT(A)’s order u/s 263 (of Income Tax Act, 1961) as AO had passed a proper order
Adani Port & Special Economic Zone filed its return of income. Assessment was framed u/s 143(3) (of Income Tax Act, 1961). Subsequently CIT noticed that Rs 17.08 crores was required to be disallowed u/s 14A (of Income Tax Act, 1961) r.w. r 8D but only Rs. 6.12 crore was disallowed by AO, and deduction on account of amortisation of lease land was not allowable. CIT u/s 263 (of Income Tax Act, 1961) ordered fresh assessment. ITAT set aside CIT(A)’s order as there was nothing to impeach AO’s view.-500699
1. Adani Port & Special Economic Zone was engaged in the development and operation and maintenance of ports and Special Economic Zone at Mundhra.
2. It filed its return of income declaring total income at Rs. 1,46,39,970.
3. The case was selected for scrutiny and thereafter ssessment was framed u/s 143(3) (of Income Tax Act, 1961), and total income was determined at Rs. 27,74,59,380.
4. Subsequently CIT noticed that Rs. 17.08 crore was required to be disallowed u/s. 14A (of Income Tax Act, 1961) r.w. Rule 8D (of Income Tax Rules, 1962) but only an amount of Rs. 6.12 crore was disallowed by the AO.
5. It also inter alia noticed that assessee had claimed deduction of Rs. 3,75,48,727 on account of amortization value of lease hold land which was not allowable.
6. CIT issued a notice u/s 263 (of Income Tax Act, 1961).
7. CIT held that AO was correct on the issue of disallowance made u/s 14A (of Income Tax Act, 1961) but on the other 3 issues, submissions of assessee were not found acceptable.
8. CIT directed the AO to make fresh assessment.
The ITAT held as under:
9. Revenue has not brought any material on record to demonstrate that the view taken by the A.O was impermissible view and was contrary to law or was upon erroneous application of legal principles initiating the exercising of revisionary powers u/s. 263 (of Income Tax Act, 1961).
10. In view of the aforesaid facts, we are of the view that ld.CIT was not justified in resorting to revisionary powers u/s. 263 (of Income Tax Act, 1961).
11. We therefore set aside the order of ld. CIT setting aside the assessment order passed u/s. 143(3) (of Income Tax Act, 1961).
Case Reference - Adani Port & Special Economic Zone Ltd V/S Addl C.I.T
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD "A" BENCH
(BEFORE SHRI ANIL CHATURVEDI, ACCOUNTANT
MEMBER & SHRI S.S. GODARA, JUDICIAL MEMBER)
ITA No: 1362/AHD/2015
(Assessment Year: 2010-11)
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