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2014 (9) TMI 553 - HC - Income TaxRevision u/s 263 - Applicability of section 36(1)(viii) - Whether the Tribunal was correct in holding that two views are possible with regard to the applicability of Section 36(1)(viii) r.w.s. 41(4A) even though the provisions of Section 36(1)(viii) as amended with effect from 1/4/1997 do not provide any room for interpretation other than the one adopted by the Commissioner of Income Tax in his order passed u/s 263 of the Income Tax Act – Held that:- Merely because the Tribunal adopts one of two views possible and that has resulted in loss of the Revenue it cannot be treated as erroneous order prejudicial to the interest of the Revenue unless the view taken by the tribunal is unsustainable in law - there was no justification for invoking section 263 and setting aside the order of the AO – there is no justification in setting aside the order of the AO - there is no justification in assailing the order of the tribunal which correctly held that there was no obligation to maintain the fund, when the fund was created and the withdrawal of the fund from the special reserve was before the obligation to maintain the fund came into effect on 1st April, 1998 - The withdrawals that have occasioned in the each of the above petitions do not fall foul of law - There are no errors apparent on the face of the record – Decided against revenue.
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