Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (1) TMI 1445 - AT - Income TaxPenalty proceedings u/s 271(1)(c) - CIT exercising revisionary powers u/s 263 - Held that:- Non-initiation of penalty is neither erroneous nor prejudicial to the interest of revenue as has been opined by the CIT and the exercise of revisionary power under section 263 of the Act by the CIT was wrong and against the provisions of the Act. We are not convinced with the conclusion drawn by the CIT on this issue. We have also perused the ratio laid down by the Hon’ble Apex Court in the case of Malabar Hills (2000 (2) TMI 10 - SUPREME Court) wherein it has been held that the reopening and revisionary can only powers could be exercised under section 263 of the Act only in the case of where the order passed by the AO is erroneous and prejudicial to the interest of revenue. But in the present case, the order of the AO is neither erroneous nor prejudicial to the interest of revenue and therefore the ratio has wrongly been applied by the CIT. Accordingly, we set aside the proceedings u/s 263 of the Act and the consequent order of the ld.CIT. Appeal of the assessee is allowed.
|