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2013 (10) TMI 701 - ITAT COCHINRevision Order u/s 263 – Held that:- The assessing officer did not discuss anything in the assessment order about the claim of advertisement expenses made in this year - the Ld A.R claimed that the AO did examine this issue during the course of assessment proceedings, but he did not file any material to support his claim – Relying upon Grasim Industries Ltd. V CIT [2010 (2) TMI 4 - BOMBAY HIGH COURT ] - Section 263 of the Income-tax Act, 1961 empowers the Commissioner to call for and examine the record of any proceedings under the Act and, if he considers that any order passed therein, by the Assessing Officer is erroneous in so far as it is prejudicial to the interests of the Revenue, to pass an order upon hearing the assessee and after an enquiry as is necessary, enhancing or modifying the assessment or canceling the assessment and directing a fresh assessment - The key words that are used by section 263 are that the order must be considered by the Commissioner to be "erroneous in so far as it is prejudicial to the interests of the Revenue". The provision "cannot be invoked to correct each and every type of mistake or error committed by the Assessing Officer" and "it is only when an order is erroneous that the section will be attracted" - an incorrect assumption of fact or an incorrect application of law will satisfy the requirement of the order being erroneous - An order passed in violation of the principles of natural justice or without application of mind, would be an order falling in that category - the Assessing Officer has failed to examine the issue relating to advertisement expenses - the assessment order is rendered erroneous and prejudicial to the interests of the revenue - the CIT was justified in passing the revision order by invoking the provisions of sec. 263 of the Act – Decided against Assessee.
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