The Assessing Officer allowed deduction u/s. 32AC of the Act, in the original assessment proceedings in respect of asset acquired earlier but installed during the year. The PCIT revised the order. On appeal the Tribunal held that the AO has taken one possible views and if the PCIT is not in agreement with him the revision is not justified. The Tribunal also held that the same is to be treated as clarificatory and it should be applied with retrospective effect. (AY. 2014-15)
Nuclear Power Corporation of India Ltd. v. CIT (2021) The Chamber’s Journal-November-P. 100 (Mum.)(Trib.)
S. 263 : Commissioner-Revision of orders prejudicial to revenue-Investment in new pant or machinery-Possible view-When an amendment is made to clarify or remove the hardship, the same is to be treated as clarificatory and it should be applied with retrospective effect-Revision is held to be not valid. [S. 32AC, 143(3)]