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2014 (6) TMI 15 - HC - Income TaxRevision u/s 263 of the Act - Addition u/s 68 of the Act as business income - Whether in the absence of any satisfactory explanation regarding the source of the creditor, can it be said that the credit is not a business income – Held that:- The AO has considered the entire issue and found that the unexplained cash credit is to be treated as income u/s 68 - This is not a case where the decision of the AO can be treated as erroneous - If two views are possible, the AO having adopted one view, it cannot be said that such an approach is erroneous – Relying upon Lakhmichand Baijnath Versus Commissioner Of Income-Tax, West Bengal [1958 (11) TMI 3 - SUPREME Court] - even if the explanation given by the assessee, as to how the amounts came to be received, is rejected as untenable, the credits were to be treated as business receipts which are chargeable - When such a view is possible, there was no reason for the Commissioner to have invoked Section 263 of the Act to arrive at a different finding. Setting off of brought forward business loss – Held that:- The Assessing Officer passed an order giving effect to order u/s 263 of the Act - the revenue has preferred an appeal before the Tribunal which came to be dismissed, against which the appeal is filed - the Administrative Commissioner could not have exercised jurisdiction to invoke Section 263 of the Act, the assessment order made pursuant to the order is rightly rejected by the appellate authorities and the Tribunal – Decided against Revenue.
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