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2014 (3) TMI 1113 - ITAT VISAKHAPATNAMRevision u/s 263 - Held that:- CIT cannot seek to substitute his opinion on the percentage of profit that has to be applied in the place of the opinion of the Assessing Officer under the garb of revisionary proceedings u/s 263 specifically when the AO has at page 4 and 5 of his order discussed the issue in detail and passed an order after due application of mind. Thus, the assessee succeeds on this ground. Whether the interest on deposits made out of funds collected from purchasers / customers is to assess under the head 'income from business’ or under the head 'income from other sources’- Held that:- We find that the assessee has consistently disclosing the interest income under the head 'income from business’ for the last three previous years, and the Revenue has been accepting the same as such. Basically, on the principle of consistency, this should not be disturbed unless the facts warrant such action. Thus, the issue whether interest income on deposits made out of surplus money from advance raised for purchase is assessable under the head `income from business’ or not has been adjudicated in favour of the assessee by those two High Courts. Hence the view taken by the AO is a possible view. Under the circumstances, the learned CIT cannot substitute the possible view of the Assessing Officer with his own view in an order passed u/s 263 of the Act as held by various High Courts as well as the Hon’ble Supreme Court. Thus, we uphold the contentions of the assessee and cancel the order of the CIT. - Decided in favour of assessee.
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