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2022 (2) TMI 397 - CALCUTTA HIGH COURTRevision u/s 263 by CIT - Tribunal considered the factual issue and more particularly the fact that on the very same issue the assessment was reopened u/s147 of the Act and after discussing the case and conducting an enquiry relief was granted to the assessee - HELD THAT:- Tribunal rightly took note of the law laid down by the Hon’ble Supreme Court in Malabar Industrial Company Ltd. [2000 (2) TMI 10 - SUPREME COURT] and allowed the appeal filed by the assessee. In the said decision the Hon’ble Supreme Court pointed out that the phrase “prejudicial to the interest of revenue” occurring in Section 263 has to be read in conjunction with the expression “erroneous” order passed by the assessing officer. Further every loss of revenue as a consequence of an order of the assessing officer cannot be treated as prejudicial to the interest of the revenue. In the case at hand the Tribunal rightly pointed out that the ground on which notice under Section 263 of the Act was issued was identical to the reason for reopening the assessment earlier. Furthermore, the Tribunal noted that no independent enquiry was conducted by the PCIT to justify assumption of jurisdiction under Section 263 of the Act. It is settled legal principle that the PCIT cannot substitute its opinion to that of the assessing officer on the same material which was noted by the assessing officer in the reassessment proceeding. - Decided in favour of assessee.
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