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2014 (9) TMI 924 - AT - Income TaxPower of Commissioner u/s 263 - Assessing officer passed order u/s 154 holding the fixed deposits amounting to ₹ 38,54,595/- under the head income from other sources - Commissioner revoked AO's order u/s 263 - Held that:- The provision cannot be invoked to correct each and every type of mistake or error committed by the Assessing officer, it is only when the order is erroneous that the section will be attracted. An incorrect assumption of facts or an incorrect application of law will satisfy the requirement of the order being erroneous. In the same category, fall orders passed without applying the principles of natural justice or without application of mind - order passed by the Assessing officer u/s. 154 of the I.T. Act cannot be said to be prejudicial to the interests of the Revenue.. Hence, we cannot uphold the order passed by the CIT u/s. 263 of the I.T. Act. At the time of hearing, it was brought to our notice by the Ld. AR that the order passed by the Assessing officer u/s. 154 of the Act is pending before the CIT(A) for adjudication. Hence, we make it clear that our findings herein cannot be influenced by the CIT(A) order while deciding the appeal against the order passed u/s. 154 of the I.T. Act and he is required to decide the issue on merits - Decided in favour of assessee.
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