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2010 (4) TMI 237 - HC - Income TaxPurchase and sale of shares – revision by Commissioner of income tax (CIT) u/s 263 – application of ruling of AAR delivered in a different case – rejection of ruling of AAR in the own case of the assessee - Held that: the invocation of the jurisdiction under Section 263 was improper - Firstly, the Commissioner has exfacie made a determination contrary to the plain language of Section 245S when he holds that the ruling of the AAR in the case of Fidelity Northstar Fund would apply to the case of the assessee. Unless the binding ruling in the case of the petitioner is displaced by pursuing requisite procedures under the law, that ruling must continue to operate and be binding between the petitioner and the Revenue. Secondly, and in any event, the Commissioner could not have possibly come to the conclusion that the view of the Assessing Officer was erroneous or that it was prejudicial to the interests of the Revenue when the Assessing Officer has followed a binding ruling of the AAR. The assessment order which gives effect to a binding precedent, in this case of the AAR, cannot be regarded as being erroneous or as being prejudicial to the interests of the Revenue.
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