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2014 (1) TMI 800 - AT - Income TaxValidity of order passed u/s 263 - Held that:- Sec. 263 makes it clear that the pre-requisite to the exercise of jurisdiction by the Commissioner suo motu under it, is that the order of the AO is erroneous in so far as it is prejudicial to the interests of the Revenue - Once the business income has been accepted, it proves beyond all reasonable doubts that the business has been set up - The assessee is lawfully entitled to claim all business expenditure and allowances - The AO has allowed depreciation after examining the depreciation chart filed by the assessee - The AO must have been satisfied with the claim of depreciation vis-à-vis set up of business vis-à-vis business income - The order of the AO may be brief and cryptic but that by itself is not sufficient reason to brand the assessment order as erroneous and prejudicial to the interest of the Revenue - Writing an order in detail may be a legal requirement but the order not fulfilling this requirement cannot be said to be erroneous and prejudicial to the interest of the Revenue. The AO has adopted a course permissible in law backed by facts and judicial decisions and the AO has taken one view with which the Commissioner does not agree - The order of the assessment cannot be treated as erroneous order and prejudicial to the interest of the Revenue unless the view taken by the AO is unsustainable in law or on facts – Following CIT VS Max India Ltd [2007 (11) TMI 12 - Supreme Court of India] - The order of CIT is set aside and that of the AO. Is restored - Decided in favour of assessee.
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