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2009 (7) TMI 880 - ITAT MUMBAIRevaluation loss - assessee has claimed loss on account of revaluation of closing stock of debentures and shares - assessee did not carry out any business in share trading in the financial year relevant to the immediately preceding assessment year - AO accepting the claim of the assessee for deduction on account of fall in value of shares and securities as reflected in the balance sheet. In the circumstances the claim of the assessee clearly reflected in the balance sheet and return of income and accepted by the AO cannot be said to be erroneous or legally unsustainable. As held by the Supreme Court in the case of Malabar Industrial Co. Ltd.(2000 - TMI - 5786 - SUPREME Court) Revision - Held that:- when two views were inherently possible and that ITO has taken one view then even if the CIT doesn't agree with the view taken by the AO, the assessment order cannot be treated as erroneous order prejudicial to the interest of the Revenue, unless the view taken by the ITO is unsustainable in law. Unless an assessment order is both erroneous as well as prejudicial to the interest of the Revenue, the CIT doesn't have jurisdiction to revise the assessment order under section 263. order of the CIT under section 263 is not sustainable in law and accordingly set aside, appeal of the assessee is allowed.
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