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2020 (4) TMI 648 - ITAT PUNERevision u/s 263 - character and nature of the subsidy received by the assessee - whether order passed by the AO is erroneous and there is loss to the revenue? - HELD THAT: - AO had made adequate enquiry for the purpose of finding the true character and nature of the subsidy received by the assessee i.e. whether the same was capital in nature or revenue in nature. After making sufficient enquiry, AO allowed the claim of the assessee and held the subsidy to be revenue in nature. It is correct that the AO has not written voluminous order accepting the contentions of the assessee. AO is not required to write detailed order accepting the contentions of the assessee, once the same is in accordance with law. AO is only required to write decision on contentious issues placed before him and not to write decision on the issues on which sufficient enquiry was made and the AO and after enquiry AO is satisfied that the issue is covered in favor of the assessee in accordance with the provisions of law. No error in the order passed by the AO once sufficient enquiry were made to the true character of the subsidy received by the assessee - issue of subsidy is squarely covered by the decision of the Hon‟ble Supreme Court in the case of Chaphalkar Brothers [2017 (12) TMI 816 - SUPREME COURT]. In view of the matter, we fail to understand how the order passed by the Assessing Officer can be said to be erroneous and prejudicial to the interest of the revenue - Decided in favour of assessee.
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