AO allowed assessee’s claim for deduction of expenditure incurred on CDs. CIT revised the order of the AO on the ground that AO had not carried out any enquiries as to nature of expenditure being capital or not. Tribunal allowed assessee’s appeal holding that AO had carried out detailed enquiries and taken a view which was a plausible view Accordingly, Tribunal set aside revisional order passed by Commissioner. On appeal High Court upheld order passed by Tribunal. (AY. 2010-11)
PCIT v. Sumatichand Tolamal Gouti (2019) 267 Taxman 495 / 111 taxmann.com 286 (Bom.)(HC) Editoral : SLP of revenue is dismissed, PCIT v. Sumatichand Tolamal Gouti (2019) 267 Taxman 494 (SC)// 417 ITR 62 (St.)(SC)
S. 263 : Commissioner-Revision of orders prejudicial to revenue-Capital or revenue–Expenditure incurred on CDs-Allowed as revenue expenditure-Plausible view–revision is held to be not valid-Order of Tribunal is affirmed. [S. 37(1)]