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2016 (3) TMI 1141 - AT - Income TaxRevision u/s 263 - CIT proposed to revise the assessment on the reasoning that the assessment order is erroneous and prejudicial to the interests of the revenue - as per CIT(A) AO has allowed the claim of the assessee including the opening value of WIP without realising that the assessee is not entitled to claim the same - Held that:- The assessee was constrained to incur expenses over the years, i.e., since 2006 onwards in order to clear the encumbrances and rival claims so that the plot of land on which the development took place is free from all kinds of encumbrances. There is no dispute with regard to the fact that the assessee is required to bear all the expenses in order to perfect the title of the land. There is also no dispute that the assessee has been incurring the expenses in this regard over many years. In fact, the assessing officer has sought to assess the income relating to the project in the hands of the assessee in AY 2009-10, by which time, the assessee has already incurred expenses to the tune of ₹ 2.13 crores. Thus, it is not a case that the assessing officer was not aware of the expenses claimed by the assessee. The facts narrated by the assessee shows that the assessee has purchased the land from the owners, who had earlier entered into an agreement with two other parties. Hence the possibility of creating hindrances by the concerned persons should have been available and the assessee was constrained to clear all of them, lest assessee’s project should suffer. However, the Ld Principal CIT has taken the assessee has incurred those expenses on humanitarian grounds or gratuitously and hence the same cannot be considered as business expenses. We are of the view that the learned CIT has merely taken a different view of the matter, where as it is seen that the view taken by the assessing officer in allowing the claim was one of the possible views, since the same has been incurred in furtherance of the business objectives. It is well settled proposition that the assessment order would not be rendered prejudicial to the interests of the revenue, if the assessing officer has taken a possible view of the matter. The assessment order cannot be considered to be erroneous, if the assessing officer has allowed the claim of the assessee after carrying out necessary examination and further if the assessing officer has taken one of the possible views, it cannot be taken as prejudicial to the interests of the revenue.In the instant case, we are of the view that the AO has allowed the claim of the assessee after carrying out necessary examination and has also taken one of the possible views. - Decided in favour of assessee
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